An Analysis of Pseudo-Goodwin Cycles in a Wage-Led Minsky Model

TL;DR

This paper refines the mathematical understanding of pseudo-Goodwin cycles within wage-led Minsky models, clarifying that these are not genuine Goodwin cycles but similar phenomena.

Contribution

It provides a precise mathematical characterization of pseudo-Goodwin cycles in wage-led Minsky models, distinguishing them from true Goodwin cycles.

Findings

Pseudo-Goodwin cycles are mathematically distinct from real Goodwin cycles.

The paper clarifies the conditions under which pseudo-Goodwin cycles occur.

It enhances understanding of cyclical dynamics in wage-led economic models.

Abstract

The goal of these notes is to make the concept of "pseudo goodwin cycles" mathematically more precise. At first the title seems like a contradiction to have a wage-led model and still find goodwin cycles in it, but the point we try to make in the paper is that those are only `pseudo-goodwin' cycles, and not real goodwin cycles.