my plan for capitalism would begin with recognising it for what it is
Sounds like a plan.
Migeru:
standard economic theory doesn't have a workable model of capital development, credit creation, the intertemporal effects of debt...
The absence of such (a) model(s) in a highly modelised theoretical environment may have had (no, some, a great deal of) effect on recently observable financial instability?
That's what Minsky's Stabilizing an Unstable Economy (1986) is about. Except that it's not "recently observable" - the book also contains a relatively detailed economic history of the US 1960-80 and he interprets each recession as an example of financial instability.
The one we're having now is like a cat-5 hurricane, but meteorologists don't pretend that cat-3 hurricanes are not hurricanes. En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
