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Post-Keynesian institutional economists have long had much to say about addressing macroeconomic instability, but much less about environmental sustainability. To suggest a way forward on environmental matters, this article outlines a post-Keynesian institutionalist (PKI) approach to addressing climate change. That approach builds on Hyman Minsky’s notion of the need for institutions and public policies to contain economic instability, integrating it with insight from K. William Kapp on social costs and environmental disruption as well as with more recent PKI research on what Minsky called money-manager capitalism. The article applies the PKI approach to the problem of global warming, identifying and briefly considering some near-term and longer-term policy strategies and institutional changes that could restrain climate change, enabling us to minimize further ecological damage, restore the environment, and improve human well-being.

Minsky Meets Kapp: A Post-Keynesian Institutionalist Approach to Addressing Climate Change