Financial Instability in Latin America:
A Minskian-Kaleckian Perspective
Tsuyoshi Yasuhara
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.



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


Whose Jacobian matrix is made up of the following elements:

and assuming that the propensity Se is not affected by f

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:



We consider the result when