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Understanding Financialization: Standing on the Shoulders of Minsky

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  • Charles J. Whalen

Abstract

Since the death of Hyman Minsky in 1996, much has been written about financialization. This paper explores the issues that Minsky examined in the last decade of his life and considers their relationship to that financialization literature. Part I addresses Minsky's penetrating observations regarding what he called money manager capitalism. Part II outlines the powerful analytical framework that Minsky used to organize his thinking and that we can use to extend his work. Part III shows how Minsky's observations and framework represent a major contribution to the study of financialization. Part IV highlights two keys to Minsky's success: his treatment of economics as a grand adventure and his willingness to step beyond the world of theory. Part V concludes by providing a short recap, acknowledging formidable challenges facing scholars with a Minsky perspective, and calling attention to the glimmer of hope that offers a way forward.

Suggested Citation

  • Charles J. Whalen, 2017. "Understanding Financialization: Standing on the Shoulders of Minsky," Economics Working Paper Archive wp_892, Levy Economics Institute.
    • Handle: RePEc:lev:wrkpap:wp_892
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    References listed on IDEAS

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    1. Christopher Brown, 2008. "Inequality, Consumer Credit and the Saving Puzzle," Books, Edward Elgar Publishing, number 12877.
    2. Thomas I. Palley, 2013. "Financialization: What It Is and Why It Matters," Palgrave Macmillan Books, in: Financialization, chapter 2, pages 17-40, Palgrave Macmillan.
    3. Hyman P. Minsky & Charles J. Whalen, 1996. "Economic Insecurity and the Institutional Prerequisites for Successful Capitalism," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 19(2), pages 155-170, December.
    4. William Van Lear, 2002. "A Populist Challenge to Corporate Capitalism," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number 4868, February.
    5. Feenstra, Robert C. & Taylor, Alan M. (ed.), 2014. "Globalization in an Age of Crisis," National Bureau of Economic Research Books, University of Chicago Press, number 9780226030753, December.
    6. Christopher J. Niggle, 1986. "Financial Innovation and the Distinction between Financial and Industrial Capital," Journal of Economic Issues, Taylor & Francis Journals, vol. 20(2), pages 375-382, June.
    7. Zdravka Todorova, 2009. "Money and Households in a Capitalist Economy," Books, Edward Elgar Publishing, number 13178.
    8. Buiter, Willem, 2009. "The unfortunate uselessness of most ’state of the art’ academic monetary economics," MPRA Paper 58407, University Library of Munich, Germany, revised 06 Mar 2009.
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    Cited by:

    1. Whalen Charles J., 2017. "Understanding financialization: standing on the shoulders of Minsky," Financial Internet Quarterly (formerly e-Finanse), Sciendo, vol. 13(2), pages 45-61, December.
    2. Gökçer Özgür, 2021. "Shadow banking and financial intermediation," Metroeconomica, Wiley Blackwell, vol. 72(4), pages 731-757, November.
    3. Charles J. Whalen, 2020. "Post-Keynesian institutionalism: past, present, and future," Evolutionary and Institutional Economics Review, Springer, vol. 17(1), pages 71-92, January.

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    More about this item

    Keywords

    Hyman Minsky; Money Manager Capitalism; Financialization;
    All these keywords.

    JEL classification:

    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • G - Financial Economics

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