Financial instability and functional finance : a Lerner-Minsky perspective
In the wake of the 2007/08 financial crisis, massive public interventions in markets that sought to mitigate the subsequent depression have resulted in huge deficits without being able to calm down the nervousness of markets and the rise of unemployment. A counterproductive dilemma then came into the picture through the opposition between deficit creating reflationary policies and conservative budgetary policies. The “original sin” of such a debate lies in the implicit assumption that active public spending is harmful to economic activity at long run without providing consistent analysis of the malfunctioning of financialized and weakened economies. This paper suggests another alternative by bringing together functional finance of Abba Lerner and financial instability hypothesis of Hyman Minsky in order to state the principles of an alternative macroeconomic stabilization framework able to prevent disequilibria-fuelling speculative finance and to sustain job-creating productive activities.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||2014|
|Publication status:|| Published in Mamica, L., Tridico, P. Economic policy and the financial crisis, Routledge, pp.148-162, 2014, |
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-01113534|
|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. Randall Wray, 2009.
"An Alternative View of Finance, Saving, Deficits, and Liquidity,"
International Journal of Political Economy,
M.E. Sharpe, Inc., vol. 38(4), pages 25-43, December.
- 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. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:hal:journl:halshs-01113534. 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.