Advanced Search
MyIDEAS: Login to save this paper or follow this series

Paving the way for reconsidering the working of market economies: the Minsky perspective

Contents:

Author Info

  • Faruk Ülgen

    ()
    (CREG - Centre de recherche en économie de Grenoble - Université Pierre-Mendès-France - Grenoble II : EA4625)

Abstract

This essay develops the financial instability hypothesis of Hyman Minsky through an analysis of the pitfalls of the liberal regulatory framework in order to deal with long-standing and long-lasting financial issues of capitalist economies. It argues that the roots of the 2007/08 crisis are closely related to the regulatory environment in force. Since the 1970s, major capitalist economies evolve towards a new accumulation regime resting on a deep financialisation leading into growing speculative and short-sighted economic activities that generate recurrent crises. This evolution is encouraged and accompanied by market- friendly (de )regulatory mechanisms mainly founded on the belief that liberalised markets are globally self- adjusting. To cope with the pitfalls of such beliefs, the financial instability hypothesis assumes that the functioning of financialised capitalism endogenously generates instabilities and identifies the capital development as the core issue in capitalist evolution. From this perspective, some simple policy principles are suggested to design consistent regulatory mechanisms in order to reduce systemic failures and their consequences in the capitalist economy.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://halshs.archives-ouvertes.fr/docs/00/86/85/21/PDF/pub12084.pdf
Download Restriction: no

Bibliographic Info

Paper provided by HAL in its series Post-Print with number halshs-00868521.

as in new window
Length:
Date of creation: 25 Oct 2012
Date of revision:
Publication status: Published - Presented, 16th conference of the Research network macroeconomics and macroeconomic policies (FMM) "The state of economics after the crisis", 2012, Berlin, Germany
Handle: RePEc:hal:journl:halshs-00868521

Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00868521
Contact details of provider:
Web page: http://hal.archives-ouvertes.fr/

Related research

Keywords: financial crisis ; market economy ; liberalization ; regulation ; financial system;

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Lawrence King & Michael Kitson & Sue Konzelmann & Frank Wilkinson, 2012. "Making the same mistake again--or is this time different?," Cambridge Journal of Economics, Oxford University Press, Oxford University Press, vol. 36(1), pages 1-15.
  2. James Crotty, 2008. "Structural Causes of the Global Financial Crisis: A Critical Assessment of the ‘New Financial Architecture’," UMASS Amherst Economics Working Papers, University of Massachusetts Amherst, Department of Economics 2008-14, .
  3. James Crotty, 2008. "Structural Causes of the Global Financial Crisis: A Critical Assessment of the ‘New Financial Architecture’," Working Papers wp180, Political Economy Research Institute, University of Massachusetts at Amherst.
  4. Fama, Eugene F, 1970. "Efficient Capital Markets: A Review of Theory and Empirical Work," Journal of Finance, American Finance Association, American Finance Association, vol. 25(2), pages 383-417, May.
  5. Kane, Edward J, 1988. "Interaction of Financial and Regulatory Innovation," American Economic Review, American Economic Association, vol. 78(2), pages 328-34, May.
  6. Shleifer, Andrei, 2000. "Inefficient Markets: An Introduction to Behavioral Finance," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780198292272, October.
  7. Paul Davidson, 2008. "Is the current financial distress caused by the subprime mortgage crisis a Minsky moment? or is it the result of attempting to securitize illiquid noncommercial mortgage loans?," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 30(4), pages 669-676, July.
  8. Jensen, Michael C., 1978. "Some anomalous evidence regarding market efficiency," Journal of Financial Economics, Elsevier, Elsevier, vol. 6(2-3), pages 95-101.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:hal:journl:halshs-00868521. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.