Tags » Financial Crises

Minsky raises an eyebrow

Jared Bernstein thinks he may see first signs of the US economy heading towards a new credit-bubble, and reminds us to be alert. In his words: 41 more words

The Minsky Moment

An old New Yorker piece by John Cassidy where he summarizes the main point of Hyman Minsky’s hypothesis:

There are basically five stages in Minsky’s model of the credit cycle: displacement, boom, euphoria, profit taking, and panic. 25 more words

Does QE increase financial instability?

Brad DeLong can’t see how. It’s a very thorough discussion and well worth reading, regardless on what side of the issue one comes down to.

Yellen on fiscal stimulus near the ZLB

“What lessons can we draw from this experience? The first is that governments need to address long-term challenges and significantly improve their structural fiscal balances during good times so they have more fiscal space to provide stimulus when times turn bad. 102 more words

What Lehman does or doesn't tell us about rationality in financial markets

Jeff Madrick’s essay, “The Real Lessons of Lehman”, is a nice discussion on what could have happened had the government (or the FED) rescued Lehman Brothers back in 2008. 294 more words

Bagehot on the need to study the financial system

Among the many timeless quotes in Walter Bagehot’s “Lombard Street”, this one is my favorite:

“I believe that our system, though curious and peculiar, may be worked savely; but if we wish so to work it, we must study it. 116 more words