Financial Instability

Nektarios Michail

Chapter Chapter 8 in Money, Credit, and Crises, 2021, pp 137-154 from Springer

Abstract: Abstract The Financial Instability Hypothesis (FIH) was developed by Hyman MinskyMinsky, Hyman in the 1970s and 1980s, with the aim of answer the question of whether “it”, i.e. a Great Depression-like event, could happen again. Linking Minsky’s theory to the previous chapters, the reader can understand why banks may have an inclination to provide enormous amounts of lending to riskier investments in some times and why they can withhold their funds from prudent projects in other. The theory elaborates on the phases of lending and can explain why banks can become overly exuberant at times when the economy is booming, and overly pessimistic when faced with economic downturns. Understanding this can shed light to every banking crisis thus far, with short examples of recent crises.

Date: 2021
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-64384-3_8

Ordering information: This item can be ordered from
http://www.springer.com/9783030643843

DOI: 10.1007/978-3-030-64384-3_8

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().