Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/56996
Authors: 
Wray, L. Randall
Year of Publication: 
2011
Series/Report no.: 
Working paper, Levy Economics Institute 681
Abstract: 
In this paper, I first quickly recount the causes and consequences of the global financial crisis (GFC). Of course, the triggering event was the unfolding of the subprime crisis; however, I argue that the financial system was already so fragile that just about anything could have caused the collapse. I then move on to an assessment of the lessons we should have learned. Briefly, these include: (a) the GFC was not a liquidity crisis, (b) underwriting matters, (c) unregulated and unsupervised financial institutions naturally evolve into control frauds, and (d) the worst part is the cover-up of the crimes. I argue that we cannot resolve the crisis until we begin going after the fraud. Finally, I outline an agenda for reform, along the lines suggested by the work of Hyman P. Minsky.
Subjects: 
global financial crisis
subprime crisis
Hyman P. Minsky
Galbraith and the Great Crash
control fraud
underwriting
deregulation
financial reform
JEL: 
E3
E11
E12
E32
E44
G01
G21
G38
Document Type: 
Working Paper

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