Securitization and financialization

Alicia Girón and Alma Chapoy

Journal of Post Keynesian Economics, 2012, vol. 35, issue 2, 171-186

Abstract: Securitization and financialization are the main causes of the financial crisis. These two concepts explain not only Minsky's financial instability hypothesis but also the off-balance-sheet operations represented by derivative products, which are closely related to mortgage loans. Financial intermediaries in need of liquidity did everything in their power so that the securitization of assets could have a life of its own in financial operations. This is a process that is endogenous to the development of financialization. Because said process was a violation of the monetary economy, it was necessary for central banks to intervene as "lenders of last resort" as well as to nationalize and restructure all the financial intermediaries.

Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.2753/PKE0160-3477350201 (text/html)
Access to full text is restricted to subscribers.

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:mes:postke:v:35:y:2012:i:2:p:171-186

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MPKE20

DOI: 10.2753/PKE0160-3477350201

Access Statistics for this article

More articles in Journal of Post Keynesian Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().