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

Lawrence White ()

Econ Journal Watch, 2015, vol. 12, issue 1, 106-113

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.

Keywords: Hyman Minsky; monetary institutions; Friedrich Hayek; financial instability hypothesis; free banking (search for similar items in EconPapers)
JEL-codes: B3 E00 E3 E4 E5 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (3)

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