Hyman Minsky

I would bet on near-systemic collapse before the Fed starts either asset purchases or Congress resorts to fiscal activism. But eventually, the Fed is going to purchase more than just treasuries. They will purchase a lot of financial assets…

This post is designed to be a quick hit but I wanted to put up a few thoughts on corporatism, stimulus and austerity. Consider it an extension of my post "Corporatism masquerading as Liberty". I intend to argue that corporatism is…

By L. Randall Wray The following is a paper given at the ASSA conference in Denver this past week for a panel organized by James Galbraith, titled Pressures on the Paradigm, sponsored by Economists for Peace & Security. The Queen…

Grantham argues that a disproportionate share of the US economy is devoted to financial services.

Great video detailing explanations for why the financial crisis happened. Big hat tip to the Pragmatic Capitalist. I like this first aspect of the video and I LOVE the drawings. Very cool. Of course, you know that you're going to get…

Below are three videos from a talk at the 2009 Economics of Peace Conference in Sonoma, CA, where James Galbraith talks about the Hyman Minsky concept of the instability of stability. This concept is fundamental to the behavioural…

Hat tip Rolfe Winkler.

Wolfgang Munchau of the Financial Times wrote a very important comment piece in today’s Financial Times. In it he said that central banks are targeting asset prices to avoid the brunt of cyclical downturns. This policy is inducing asset…

Let’s say I run a company. For the sake of argument, we’ll call it a shoe store in New York City. I am making $100,000 net per year now. But, I look around me and see huge opportunity for growth. So I go to my bank and ask for a loan to…

Last week, I highlighted some of the ideas of Australian economist Steve Keen in my post, “Steve Keen and the spectre of terminal debt.”  Keen is of the Minsky camp and he believes that an unsustainable debt bubble has build up in the…