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Financial Instability, Cycles and the Role of Institutions

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  • Iancu, Aurel

Abstract

In this study I review the main scientific contributions of Minsky and other scholars to the financial instability and crisis issues, and the role of institutions in modeling the medium and long financial and business waves. The topics developed in this paper are the following: the relationships between financial instability, financial and business crisis and institutions; the thwarting of the explosive instability by the specific institutions’ actions and regulations; the impact of the institutional changes on the financial and business cycles; an empiric approach to the financial and business cycles and their synchronization in the Central and Eastern European countries/ members of the EU, taking into account the main characteristics of the changes in these countries’ institutions.

Suggested Citation

  • Iancu, Aurel, 2014. "Financial Instability, Cycles and the Role of Institutions," Working Papers of National Institute for Economic Research 141007, Institutul National de Cercetari Economice (INCE).
    • Handle: RePEc:ror:wpince:141007
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    References listed on IDEAS

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    8. G. Silverberg, 2007. "Long Waves: Conceptual, Empirical and Modelling Issues," Chapters, in: Horst Hanusch & Andreas Pyka (ed.), Elgar Companion to Neo-Schumpeterian Economics, chapter 50, Edward Elgar Publishing.
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    More about this item

    Keywords

    financial instability; business cycles; financial cycles; institutions; long waves; basic cycles; supercycles; Central and Eastern European countries;
    All these keywords.

    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
    • G01 - Financial Economics - - General - - - Financial Crises
    • G2 - Financial Economics - - Financial Institutions and Services
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • P11 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Planning, Coordination, and Reform
    • P21 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Planning, Coordination, and Reform
    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

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