Scholarly Comments on Academic Economics

Skepticism About Minsky’s Financial Instability Hypothesis: A Comment on Flanders

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Abstract

June Flanders (2015) provides a useful introduction to Hyman Minsky’s views on banking and macroeconomics. Minsky’s “financial instability hypothesis” (FIH) basically says that debt-based intermediation does not enable intertemporal equilibrium but rather self-generates boom and bust even in the absence of government intervention. The theory and history of banking cast doubt on the FIH.

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Volume (Issue)
Pages
106-113
Published
JEL classification
B3, E00, E3, E4, E5
Keywords
Hyman Minsky, monetary institutions, Friedrich Hayek, financial instability hypothesis, free banking
Downloads
8,284 article downloads
5,788 complete issue downloads
Total: 14,072

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