Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/31658
Authors: 
Wray, L. Randall
Year of Publication: 
2007
Series/Report no.: 
Working papers // The Levy Economics Institute 522
Abstract: 
This paper uses Hyman P. Minsky's approach to analyze the current international financial crisis, which was initiated by problems in the American real estate market. In a 1987 manuscript, Minsky had already recognized the importance of the trend toward securitization of home mortgages. This paper identifies the causes and consequences of the financial innovations that created the real estate boom and bust. It examines the role played by each of the key playersincluding brokers, appraisers, borrowers, securitizers, insurers, and regulatorsin creating the crisis. Finally, it proposes short-run solutions to the current crisis, as well as longer-run policy to prevent it” (a debt deflation) from happening again.
Subjects: 
Hymann Minsky
Financial Instability
Mortgage-backed Securities
Subprime Mortgages
JEL: 
E12
E32
E44
E58
E63
Document Type: 
Working Paper

Files in This Item:
File
Size
416.23 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.