Financial Instability in Latin America:

A Minskian-Kaleckian Perspective

A Minskian-Kaleckian Perspective

Financial Instability:
Capital Accumulation and Payments Abroad

Using the function differentiated by time and shown in the previous sections, we present the dynamic adjustment model for the system.

(7) |

(9) |

Linearizing equation 7 and 9 around the initial balance of *g* and *f* , we obtain the following matrix:

(10) |

Whose Jacobian matrix is made up of the following elements:

and assuming that the propensity *S _{e}* is not affected by

With the assumption that * t* and *u* are not a function of *g*, we obtain:

The condition required for the convergent dynamic adjustment that indicates stability of the equilibrium is obtained by:

(11) |

(12) |

We consider the result when