tag:blogger.com,1999:blog-14162253.post2354186084938742805..comments2024-03-28T18:57:15.124-06:00Comments on Wash Park Prophet: Minsky Is The New SchumpeterAndrew Oh-Willekehttp://www.blogger.com/profile/02537151821869153861noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-14162253.post-31820680912597094672009-09-15T15:18:37.431-06:002009-09-15T15:18:37.431-06:00Boom and bust cycles were a huge issue long before...Boom and bust cycles were a huge issue long before the gold standard was abandoned with all the vengence we see in them today.<br /><br />Fractional reserve credit arrangements are a "natural" phenomena of contract law that can't be easily rendered illegal. Still, there is no evidence that economies that don't make widespread use of credit arrangements don't have intense boom and bust cycles.Andrew Oh-Willekehttps://www.blogger.com/profile/02537151821869153861noreply@blogger.comtag:blogger.com,1999:blog-14162253.post-88590018013834884102009-09-15T13:24:09.653-06:002009-09-15T13:24:09.653-06:00"Instability is an inherent and inescapable f..."Instability is an inherent and inescapable flaw of capitalism."<br /><br />When I first read this, I immediately agreed with it since I agree with your quote of Schumpeter where technological progress is linked to capitalism, and technological progress destabilizes society.<br /><br />But then I dug into the context of Minsky's quote and found out he was referring to the boom and bust cycle. Minsky is all wrong. The boom and bust cycle is inherent to fractional reserve banking, not to capitalism. A gold-standard no-fractional-reserve capitalistic system would be stable.Michael Malakhttps://www.blogger.com/profile/10007582156392845677noreply@blogger.com