Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/31614
Authors: 
Kregel, Jan
Year of Publication: 
2009
Series/Report no.: 
Working papers // The Levy Economics Institute 558
Abstract: 
International financial flows are the propagation mechanism for transmitting financial instability across borders. They are also the source of unsustainable external debt. Managing volatility thus requires institutions that promote domestic financial stability, ensure that domestic instability is not transmitted internationally, and guarantee that international institutions and rules of the game are not themselves a cause of volatility. This paper analyzes proposals to increase stability in domestic markets, in international markets, and in the structure of the international financial system from the point of view of Hyman P. Minsky's financial instability hypothesis, and outlines how each of these three channels can produce financial fragility that lays the system open to financial instability and financial crisis.
Subjects: 
Minsky
financial crisis
international capital flows
risk reduction
hedging
speculation
international financial architecture
Bretton Woods system
JEL: 
F33
F34
F55
G21
G28
Document Type: 
Working Paper

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