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Preventing Financial Crises: A Vital yet Frequently Overlooked Aspect of Minsky's Economics

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  • Samba Diop

    (CRIISEA - Centre de Recherche sur les Institutions, l'Industrie et les Systèmes Économiques d'Amiens - UR UPJV 3908 - UPJV - Université de Picardie Jules Verne)

Abstract

Periods of financial instability are always an opportunity for Hyman P. Minsky to return to the spotlight. Often, they result in an increase in the number of references made to Minsky's work, otherwise relegated to the margins of academic debate. For the most part, this work involving Minsky is limited to demonstrating the relevance of the Financial Instability Hypothesis in explaining the mechanisms of financial fragility or the need to implement countercyclical measures during the acute phase of the crisis. In my view, such a use of Minsky's work is incomplete because it fails to take into account an equally important aspect of it: that which relates to the prevention of financial crises. \textcopyright 2021, Journal of Economic Issues / Association for Evolutionary Economics.

Suggested Citation

  • Samba Diop, 2021. "Preventing Financial Crises: A Vital yet Frequently Overlooked Aspect of Minsky's Economics," Post-Print hal-03678289, HAL.
  • Handle: RePEc:hal:journl:hal-03678289
    DOI: 10.1080/00213624.2021.1875729
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