Para prevenir otra crisis: las lecciones olvidadas de Minsky 10 años después de Lehman

Jan Kregel

El Trimestre Económico, 2019, vol. 86 (4), issue 344, 1059-1068

Abstract: An in-depth study of the factors that originated the collapse of the U. S. financial system about a decade ago benefits greatly from Hyman P. Minsky’s explanations, particularly of the financial system intrinsic to capitalism and its evolution throughout a longer span of time. As borrowers and lenders become excessively confident that their expectations about the future will be fulfilled, it is more likely that a financial debt will prove to be impossible to validate: i. e., in terms of financing structures, the one known as “hedge” is going to give way to the “speculative” and then to the “Ponzi” one. Such phenomenon must be situated in a larger historical framework: it derives from the critique made in the decade of 1980 of the “Big Government” and its role in warranting stability with the specter of recession looming. Because for the banking system the maximization of profit determines a maximization of the loan volume, it is indeed necessary to put into effect the most pertinent bank regulations (not those imposed when conceding primacy to investment banks, to the detriment of commercial ones), and avoid as well the substitution of productivity gains with the capital gains that nowadays prevail in the system. Even though financial fragility will never cease, we must strive to understand its mechanism and try to employ the best bulwark against the instability it leads to time and again.

Keywords: collapse of the U. S. financial system; Hyman P. Minsky; hedge financing structures; speculative financing structures; Ponzi financing structures; Big Government; history of banking regulations; productivity gains versus capital gains; Great Depression. (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.eltrimestreeconomico.com.mx/index.php/te/article/view/874

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:elt:journl:v:86:y:2019:i:344:p:1059-1068

Ordering information: This journal article can be ordered from
Order print issues directly in our web page or with Guadalupe Galicia at Fondo de Cultura Económica, El Trimestre Económico, Carretera Picacho Ajusco 227, 2° piso, Col. Bosques del Pedregal, CP 14738, Tlalpan, Ciudad de México
http://www.eltrimestreeconomico.com.mx

DOI: 10.20430/ete.v86i344.874

Access Statistics for this article

El Trimestre Económico is currently edited by Orlando Delgado Selley, Saúl Escobar Toledo, Jorge Isaac Egurrola and José Valenzuela Feijóo

More articles in El Trimestre Económico from Fondo de Cultura Económica
Bibliographic data for series maintained by Nuria Pliego Vinageras ().