Stabilizing an unstable economy (Chapters 1-2)

Стабилизируя нестабильную экономику

Hyman Minsky

Ekonomicheskaya Politika / Economic Policy, 2016, vol. 2, 52—91

Abstract: In the first chapter of his seminal book Hyman Minsky formulates methodological orientations in economic studies and general economic policies. The second chapter is devoted to the analysis of the period of financial instability in the United States since the late 1960's to early 1980's and the first recession 1973-1975. The author shows that due to the fiscal stimulus on the part of Big Government and the central bank as a lender of last-instance the US economy managed to avoid the depression and recession relatively quickly overcome. It happened not only because deficit financing budget expenditures supported the demand, but also because of increasing public debt act as a stabilizer of portfolios of creditors. During this period, it changed the character of the economic crisis and recession: instead of deep depression financial instability has taken a high and accelerating inflation form.

Keywords: financial instability hypothesis; the theory of the business cycle; the impact of public debt on the balance sheets; macroeconomic automatic stabilizers (search for similar items in EconPapers)
JEL-codes: B31 E12 E32 E44 E6 (search for similar items in EconPapers)
Date: 2016
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