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Burak Erkut

Hyman P. Minsky focused on explaining investment by means of a financial theory; the financial instability hypothesis, put forward by Minsky, provides an explanation to the existence of business cycles by tracing their roots back to the transformation from robust financial markets to fragile financial markets (Minsky, 1992). During the final years of his life, his attempts were placed in a historical framework of analysis, with which he aimed to explain capitalist development based on the assumption of multiple forms of capitalism (Sau, 2019). His theory of capitalist development was published under the names “Schumpeter: Finance and Evolution” (Minsky, 1990) and “Schumpeter and Finance” (Minsky, 1993). His focus in the final era of his life was to give a new interpretation to the Schumpeterian theory of capitalist development by introducing Keynesian insights into it. With this research, he proposed four stages of capitalist development, which are labelled as commercial capitalism, financial capitalism, managerial capitalism and money-manager capitalism (Minsky, 1990, 1993).