Liquidity-Preference, Expected Profitability and Investment
Pendulum shifts in the demand for investment have been consistent with Minskian models because of an institutional tendency towards increasing leverage-ratios when profits increase. The same result is attained through a different route, which was implicit in Keynes’s analysis of liquidity preference. Within this analysis, changes in the state of confidence of investors cause variations …
Liquidity-Preference, Expected Profitability and Investment Read More »