The Limits of Minsky's Financial Instability Hypothesis as an Explanation of the Crisis

Bibliographic Data

ID9198656
AuthorsT Palley (0000-0002-0319-3157, Hans Böckler Foundation, corresponding author), Thomas I Palley
Year2010
Volume61
Issue11
Pages28
Publication date2010-04-02
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueMonthly Review (JOURNAL)
Journal identifiersISSN: 0027-0520 • E-ISSN: 0027-0520
PublisherMonthly Review Foundation (PUBLISHER)
DOI10.14452/mr-061-11-2010-04_2
OpenAlexW1982744423
LanguageEN
Citations received13
References cited7

Aside from Keynes, no economist seems to have benefitted so much from the financial crisis of 2007-08 as the late Hyman Minsky. The collapse of the sub-prime market in August 2007 has been widely labeled a "Minsky moment," and many view the subsequent implosion of the financial system and deep recession as confirming Minsky's "financial instability hypothesis" regarding economic crisis in capitalist economies....Recognition of Minsky's intellectual contribution is welcome and deserved. Minsky was a deeply insightful theorist about the proclivity of capitalist economies to experience financially driven booms and busts, and the crisis has confirmed many of his insights. That said, the current article argues that his theory only provides a partial and incomplete account of the current crisis.This article can also be found at the Monthly Review website, where most recent articles are published in full.Click here to purchase a PDF version of this article at the Monthly Review website

Boom · Economics · Financial crisis · Great recession · Keynesian economics · Neoclassical economics · Post-Keynesian economics · Recession · Banking stability, regulation, efficiency · Economic Theory and Policy · Global Financial Crisis and Policies

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