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dc.contributor.authorVercelli, Alessandroen_US
dc.date.accessioned2012-04-12T14:26:33Z-
dc.date.available2012-04-12T14:26:33Z-
dc.date.issued2009en_US
dc.identifier.urihttp://hdl.handle.net/10419/57085-
dc.description.abstractThis paper aims to help bridge the gap between theory and fact regarding the so-called 'Minsky moments' by revisiting the 'financial instability hypothesis' (FIH). We limit the analysis to the core of FIH-that is, to its strictly financial part. Our contribution builds on a reexamination of Minsky's contributions in light of the subprime financial crisis. We start from a constructive criticism of the well-known Minskyan taxonomy o f financial units (hedge, speculative, and Ponzi) and suggest a different approach that allows a continuous measure of the unit's financial conditions. We use this alternative approach to account for the cyclical fluctuations of financial conditions that endogenously generate instability and fragility. We may thus suggest a precise definition of the 'Minsky moment' as the starting point of a Minskyan process-the phase of a financial cycle when many financial units suffer from both liquidity and solvency problems. Although the outlined approach is very simple and has to be further developed in many directions, we may draw from it a few policy insights on ways of stabilizing the financial cycle.en_US
dc.language.isoengen_US
dc.publisherLevy Economics Inst. Annandale-on-Hudson, NYen_US
dc.relation.ispartofseriesWorking paper, Levy Economics Institute 579en_US
dc.subject.jelB50en_US
dc.subject.jelE32en_US
dc.subject.jelE44en_US
dc.subject.jelG28en_US
dc.subject.ddc330en_US
dc.subject.keywordfinancial instabilityen_US
dc.subject.keywordfinancial fragilityen_US
dc.subject.keywordfinancial fluctuationsen_US
dc.subject.keywordsubprime crisisen_US
dc.subject.keywordMinsky momentsen_US
dc.subject.keywordMinsky meltdownen_US
dc.subject.keywordspeculative unitsen_US
dc.subject.keywordhedge unitsen_US
dc.subject.keywordPonzi unitsen_US
dc.subject.stwFinanzmarktkriseen_US
dc.subject.stwTheorieen_US
dc.titleA perspective on Minsky moments: The core of the financial instability hypothesis in light of the subprime crisisen_US
dc.typeWorking Paperen_US
dc.identifier.ppn621614874en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Working Papers, Levy Economics Institute of Bard College

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