The Financial Instability Hypothesis: An Interpretation of Keynes and an Alternative to“Standard” Theory

Minsky, Hyman P.

doi:10.1080/05775132.1977.11470296

Cited by 367 publications

(283 citation statements)

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“…This financial accelerator effect may lead to both persistence and amplification of real economic shocks (see e.g. Bernanke and 9 The idea that credit booms are important for our understanding of financial crisis goes back to the seminal work of Minsky (1977) and Kindleberger (1978), who -through a comprehensive study of financial crises -documented regular trends in the relationship between credit and financial imbalances.…”

Section: House Pricesmentioning

confidence: 99%

Bubbles and Crises: The Role of House Prices and Credit

Anundsen

Gerdrup²,

Hansen³

et al. 2014

SSRN Journal

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Section: House Pricesmentioning

confidence: 99%

Bubbles and Crises: The Role of House Prices and Credit

Anundsen

Gerdrup²,

Hansen³

et al. 2014

SSRN Journal

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“…This causes growth of lending and, consequently, increased vulnerability to risk. Liquidity problems can cause a crisis of insolvency through a "domino effect" (Minsky, 1983).…”

Section: Discussionmentioning

confidence: 99%

Transformation of the Capital Market Stability Model under the Influence of the Financial Globalization

Akhmetov¹

2015

ASS

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In the course of economic globalization a process of formation of the united financial market has evolved. Integratedness of different sectors of financial market into its global form is largely stipulated by development of financial innovations and of new financial instruments. Subjacent and timeless nature of modern financial transactions leads to blurring of distinction between money and capital markets. The united market means a gradual merge of financial risks and increase of volumes and unpredictability of aggregate risk in the result of synergetic effect contained in the nature of financial market as of a nonlinear dynamical system. Serious influence on stability of financial market has a behavioral psychology of its participants that is connected with reflexivity specific to financial capital. Financial market can be described only by nonlinear stochastic equations. In this article we made the efforts to set the parameters for such a model. Basing on non-stability of a global financial market and under influence of globalization factors it was concluded that it is necessary to check the hypotheses on formation of a financial cycle apart from general business cycle.

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“…This is ironic as the one subject that the discipline of finance has ignored and forgotten, much to its own detriment, is its history of crashes, bubbles and bank failures (Reinhart & Rogoff, 2009). Minsky (1977) predicted in his Financial Instability theory, how markets tend to react with speculative euphoria leading to bubbles. While his theories had great insight, they were not taken seriously as they were not cast in mathematical models.…”

Section: Science Of Choices or Choices Of Science?mentioning

confidence: 99%

Gekko and black swans: Finance theory in UK undergraduate curricula

Lakshmi

2018

Critical Perspectives on Accounting

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A B S T R A C TDespite the current financial crisis, accounting and finance programmes in UK have remained popular. Finance undergraduate teaching in accounting degrees is a significant component of the degree and relies heavily on Modern Finance Theory (MFT). Some of the developments in the finance curricula are critically examined. It is argued that current finance education should become more reflective and more heterodox in approach as the current curricula is biased towards techniques based on neoclassical theory. Suggestions are given for improvement of the curricula which will allow the narrow assumptions of neoclassical theory to be widened. These involve students taking into account not only the structures and patterns of finance but also the processes which are created by human experiences as part of their interactions as well as what helps to make these processes sustainable.

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The Financial Instability Hypothesis: An Interpretation of Keynes and an Alternative to“Standard” Theory

Cited by 367 publications

References 0 publications

Bubbles and Crises: The Role of House Prices and Credit

Bubbles and Crises: The Role of House Prices and Credit

Transformation of the Capital Market Stability Model under the Influence of the Financial Globalization

Gekko and black swans: Finance theory in UK undergraduate curricula

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