Financial instability and functional finance : a Lerner-Minsky perspective
The 2007/08 financial crisis results in two major problems that issue difficult challenges for the economic theory and policy. The first challenge is the rise of unemployment notwithstanding growing imbalances of budget deficits. The second is the monetary and financial instability threatening the permanence of economic development. In response to these two challenges a reappraisal of the functional finance approach of Abba Lerner and of the financial instability hypothesis of Hyman Minsky seems to be a relevant way of reconsidering the pitfalls of the working of capitalist economies. Consistency of public interventions in face of growing unemployment and atonic economic activity rests on the new principles that should guide financial system's reform in order to deal with the malfunctioning of liberalized markets.
|Date of creation:||18 Oct 2012|
|Publication status:||Published in 24th annual conference of the European association for evolutionary political economy "Economic policy in times of crisis", Cracow university of economics, Oct 2012, Cracovie, Poland|
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00843754|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
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.:
- L. Wray, 2009.
"An Alternative View of Finance, Saving, Deficits, and Liquidity,"
International Journal of Political Economy,
Taylor & Francis Journals, vol. 38(4), pages 25-43.
- L. Randall Wray, 2009. "An Alternative View of Finance, Saving, Deficits, and Liquidity," Economics Working Paper Archive wp_580, Levy Economics Institute.
- Mathew Forstater, 1999. "Functional Finance and Full Employment: Lessons from Lerner for Today," Economics Working Paper Archive wp_272, Levy Economics Institute.
- Peter Hans Matthews & David Colander, 2004. "Integrating Sound Finance with Functional Finance," Middlebury College Working Paper Series 0413, Middlebury College, Department of Economics.
- Giuseppe Mastromatteo, 2011. "The Debate on the Crisis: Recent Reappraisals of the Concept of Functional Finance," DISCE - Quaderni dell'Istituto di Economia e Finanza ief0105, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
- Mathew Forstater, 1999. "Functional Finance and Full Employment: Lessons from Lerner for Today," Macroeconomics 9908002, EconWPA.
When requesting a correction, please mention this item's handle: RePEc:hal:journl:halshs-00843754. 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.