EconPapers    
Economics at your fingertips  
 

Lessons from the Subprime Meltdown

L. Randall Wray

Economics Working Paper Archive from Levy Economics Institute

Abstract: This paper uses Hyman P. Minsky's approach to analyze the current international financial crisis, which was initiated by problems in the U.S. real estate market. In a 1987 manuscript, Minsky had already recognized the importance of the trend toward securitization of home mortgages. This paper identifies the causes and consequences of the financial innovations that created the real estate boom and bust. It examines the role played by each of the key players—including brokers, appraisers, borrowers, securitizers, insurers, and regulators—in creating the crisis. Finally, it proposes short-run solutions to the current crisis, as well as longer-run policy to prevent "it" (a debt deflation) from happening again.

New Economics Papers: this item is included in nep-fmk, nep-his, nep-pke and nep-ure
Date: 2007-12
References: Add references at CitEc
Citations: View citations in EconPapers (14) Track citations by RSS feed

Downloads: (external link)
http://www.levyinstitute.org/pubs/wp_522.pdf (application/pdf)

Related works:
Journal Article: Lessons from the Subprime Meltdown (2008) Downloads
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:lev:wrkpap:wp_522

Access Statistics for this paper

More papers in Economics Working Paper Archive from Levy Economics Institute
Bibliographic data for series maintained by Elizabeth Dunn ().

 
Page updated 2019-09-29
Handle: RePEc:lev:wrkpap:wp_522