Volume 44, Number 172,
January-March 2013
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.

(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 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:

(11)

(12)

We consider the result when

Published in Mexico, 2012-2017 © D.R. Universidad Nacional Autónoma de México (UNAM).
PROBLEMAS DEL DESARROLLO. REVISTA LATINOAMERICANA DE ECONOMÍA, Volume 48, Number 191, October-December 2017 is a quarterly publication by the Universidad Nacional Autónoma de México, Ciudad Universitaria, Coyoacán, CP 04510, México, D.F. by Instituto de Investigaciones Económicas, Circuito Mario de la Cueva, Ciudad Universitaria, Coyoacán,
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The online journal Problemas del Desarrollo. Revista Latinoamericana de Economía corresponds to the printed edition of the same title with ISSN 0301-7036