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Schumpeter, Minsky and the financial instability hypothesis

Journal of Evolutionary Economics, 2014
Hyman Minsky pioneered the idea of the financial instability hypothesis to explain how swings between robustness and fragility in financial markets generate business cycles in the economic system. Yet few economists have recognized that this elemental idea originates not only from the financial theory of investment and investment theory of business ...
Mark Knell
exaly   +2 more sources

Is Minsky’s financial instability hypothesis valid?

open access: yesCambridge Journal of Economics, 2015
In this article I reassess the validity of Minsky’s financial instability hypothesis and the main criticism about its internal coherence. Starting from this fundamental objection, I study Minsky’s contribution within the scope of a highly simplified macro-model.
Charles, Sébastien
openaire   +2 more sources

Minsky’s financial instability hypothesis [PDF]

open access: yes, 2021
Since the Global Financial Crisis, Minsky’s Financial Instability Hypothesis (FIH) has been receiving a growing attention in macroeconomic analyses and policy making.
Nikolaidi, Maria, Maria Nikolaidi
openaire   +2 more sources

A Reconsideration of Minsky's Financial Instability Hypothesis

Journal of Money, Credit and Banking, 2015
The worst and longest depressions have tended to occur after periods of prolonged, and reasonably stable, prosperity. This results in part from agents rationally updating their expectations during good times and hence becoming more optimistic about future economic prospects.
Sudipto Bhattacharya   +3 more
openaire   +1 more source

Statistical Analysis of Minsky’s Financial Instability Hypothesis for the 1945–2023 Era

open access: yesJournal of Risk and Financial Management
© 2024 by the authors. cc-byFollowing the 2008 financial crisis, Hyman Minsky’s Financial Instability Hypothesis (FIH) emerged as a prominent financial theory to explain the occurrence of business cycles in the U.S. economy.
Linh N Phan   +2 more
exaly   +2 more sources

Minsky’s Financial Instability Hypothesis and the Leverage Cycle [PDF]

open access: possibleSSRN Electronic Journal, 2011
Busts after periods of prolonged prosperity have been found to be catastrophic. Financial institutions increase their leverage and shift their portfolios towards projects that were previously considered too risky. This results from institutions rationally updating their expectations and becoming more optimistic about the future prospects of the economy.
Sudipto Bhattacharya   +3 more
openaire   +1 more source

Learning, Expectations, and the Financial Instability Hypothesis

SSRN Electronic Journal, 2015
Expectations matter. Many economic and financial decisions depend on the perception of future incomes and prices. The evolution of expectations, and how correct they are over time, determines the stability of the system.
Martin Guzman, Peter Howitt
openaire   +1 more source

Contingent claim analysis and Minsky’s financial instability hypothesis

Journal of Post Keynesian Economics
George Dotsis, Konstantinos Loizos
exaly   +2 more sources

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