Legal

Institutional Prerequisites Of Financial Fragility Within Minsky's Financial Instability Hypothesis: A Proposal In Terms Of "Institutional Fragility

Download Now Free registration required

Executive Summary

The relevancy of Minsky's Financial Instability Hypothesis (FIH) in the current (and still unfolding) crisis has been clearly acknowledged by both economists and regulators. While most papers focus on discussing to what extent the FIH or Minsky's Big Bank/Big Government interpretation is appropriate to explain and sort out the crisis, some authors have also emphasized the need to consider the institutional foundations of Minsky's work (Whalen 2007, Wray 2008, Dimsky 2010). The importance of institutions within the FIH was strongly emphasized by Minsky himself, who assigned them the function of constraining the development of financial fragility.

  • Format: PDF
  • Size: 1711.5 KB