Publications

209 publications found, searching for 'Financial Instability '

• Working Paper No. 1117
  June 08, 2026

  Money Manager Capitalism and the Growth and Spread of Ponzi Finance, Private Market Version

  Éric Tymoigne
  Abstract

  Private debt and equity markets have been a funding source for nascent and credit constrained businesses for several decades. Following the 2008 financial crisis, an economic environment characterized by low…more

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• Working Paper No. 1115
  May 14, 2026

  Paying a High Premium: How Climate Change Is Crippling Homeowner’s Insurance and Fueling a Housing Crisis

  Alla Semenova
  Abstract

  This paper examines the growing impacts of climate change in the US homeowner’s insurance industry. As climate change–driven weather extremes and natural disasters have accelerated in their frequency and severity,…more

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• Working Paper No. 1114
  May 13, 2026

  Macroeconomic Fragility Effects of Financial Innovation: Behavioral and Decentralized Finance and Artificial Intelligence

  Dimitri B. Papadimitriou
  Abstract

  There seems to be a building consensus of global uncertainty and instability. This can be observed not only from surveys, the media, and country reports, but in the recent speeches…more

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• Working Paper No. 1113
  May 12, 2026

  Corporate Finance in the Theory of Innovative Enterprise

  William H. Lazonick
  Abstract

  In my research on innovative enterprise and sustainable prosperity, I use the “theory of innovative enterprise” to examine how modes of corporate finance—founder investments, private placements, initial public offerings, retained…more

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• Policy Note No. 2026/2
  April 15, 2026

  A Premium Crisis: Climate Change Threatens Homeowner’s Insurance, Housing, and Financial Stability

  Alla Semenova
  Abstract

  A Climate-Driven Systemic Crisis Climate change is rapidly destabilizing the US homeowner’s insurance system, creating major challenges for policymakers concerned with housing affordability and financial stability. Hurricanes, floods, wildfires, tornadoes,…more

• Working Paper No. 1110
  March 30, 2026

  Speculation or Fundamentals? European Natural Gas Price Swings Post 2020

  Emanuele Citera and Veronika Dolar
  Abstract

  We investigate the role of speculation in the European natural gas market over the period 2020–2024, a period marked by extreme price volatility driven by the energy crisis following Russia’s…more

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• Working Paper No. 1107
  February 20, 2026

  Artificial Intelligence: Friend, Foe, Fraud

  L. Randall Wray
  Abstract

  The over-hyped Dot.com revolution bubbled and crashed at the end of the 1990s, leaving a largely unused physical and virtual infrastructure that eventually supported the rise of social media that…more

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• Working Paper No. 1102
  December 12, 2025

  No More than Double: Can a Single Rule Tame Capitalism?

  Lorenzo Esposito and Giuseppe Mastromatteo
  Abstract

  Capitalism’s defining feature—profit maximization without limits—drives instability, inequality, and environmental degradation. Traditional policies such as taxation and regulation have failed to curb this dynamic because they do not alter firms’…more

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• Working Paper No. 1098
  October 17, 2025

  Creative Destruction Meets Financial Instability: Toward a New Synthesis

  Leonardo Burlamaqui
  Abstract

  This paper reconstructs Joseph Schumpeter’s major works to propose a coherent new departure point for analyzing economic and social change. I argue that Capitalism, Socialism and Democracy (1942) (CSD) marks…more

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• Strategic Analysis
  October 14, 2025

  The US Economy amid Rising Global Uncertainty

  Dimitri B. Papadimitriou, Giuliano Toshiro Yajima, and Gennaro Zezza
  Abstract

  Contrary to upbeat announcements on the prospects for the US economy from the current administration in Washington, economic conditions are softening for this year. The market for labor is increasing…more

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• Working Paper No. 1094
  October 01, 2025

  Lebanon’s Eventual Transition to a Floating Exchange Rate System

  Roudy Sassine
  Abstract

  Lebanon’s longstanding fixed exchange rate regime collapsed in the wake of the country’s 2019 financial crisis. This paper examines the underlying monetary factors that contributed to the collapse, offering a…more

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• Working Paper No. 1091
  September 04, 2025

  Banking on Payments?

  Jörg Bibow
  Abstract

  For the past hundred years or more, payments have been primarily associated with banking, and banking as we know it today—being the result of many centuries of evolution—features a bundling…more

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• Working Paper No. 1089
  August 07, 2025

  Rising Temperatures, Falling Yields: The Effect of Climate Shocks on Olive Oil Production in Palestine

  Yousuf Daas, Sameh Hallaq, Kenichi Kashiwagi, and Keiichi Ogawa
  Abstract

  This study investigates the effect of climate shocks on olive oil production in Palestine, a region acutely vulnerable to both environmental change and political instability. We estimate the influences of…more

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• Working Paper No. 1087
  July 30, 2025

  A Model of External Debt Sustainability and Monetary Hierarchy

  Nicolás M. Burotto
  Abstract

  The author develops a dynamic macroeconomic model of a small open economy to identify two key vulnerabilities that prevent emerging markets from fully integrating into global markets: high financial integration…more

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• Working Paper No. 1086
  July 29, 2025

  Financial Fragility Without Financial Instability

  Leonardo Burlamaqui
  Abstract

  Between the late 1990s and mid-2000s, China’s banking sector underwent a profound yet largely underappreciated transformation—arguably one of the most consequential episodes of financial restructuring in recent economic history. This…more

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• Working Paper No. 1075
  January 23, 2025

  The High Cost of the Strong Peso and Its Temporary Nature: The Case of Mexico

  Arturo Huerta G.
  Abstract

  The article analyzes why exchange rate stability has been prioritized in Mexico and why the national currency has appreciated; which policies and factors have made this possible, the costs and…more

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• Working Paper No. 1071
  December 10, 2024

  Tilting at Windmills

  James K. Galbraith and Pavlina R. Tcherneva
  Abstract

  Originally issued as EDI Working Paper No. 14, May 2023 The Central Bank of the United States, the Federal Reserve, has a dual mandate to maintain both full employment and…more

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• Working Paper No. 1066
  December 06, 2024

  Job Guarantee Program and the Kaleckian Dilemma

  Caio Vilella and Eduardo F. Bastian
  Abstract

  Originally issued as EDI Working Paper No. 10, November 2023 Minsky (1965) has presented the Job Guarantee program as a recommendation in the war against unemployment and poverty. Kalecki (1943),…more

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• Working Paper No. 1064
  December 06, 2024

  Seismic Shifts in Economic Theory and Policy from the Bernanke Doctrine to Modern Money Theory

  Pavlina R. Tcherneva and Éric Tymoigne
  Abstract

  Originally issued as EDI Working Paper No. 08, 2022  This paper evaluates the relationship between monetary and fiscal policy and the relative effectiveness of macroeconomic stabilization through the lens of…more

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• Working Paper No. 1062
  December 03, 2024

  The Value of Money

  L. Randall Wray
  Abstract

  This paper examines heterodox theories of the determinants of the value of money. Orthodox approaches that tie money’s value to relative scarcity of money or to the price level are…more

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• Strategic Analysis
  June 04, 2024

  U.S. Economic Outlook: Prospects for 2024 and Beyond

  Dimitri B. Papadimitriou, Giuliano Toshiro Yajima, and Gennaro Zezza
  Abstract

  In this report, Institute President Dimitri B. Papadimitriou, Research Scholar Giuliano T. Yajima, and Senior Scholar Gennaro Zezza discuss the rapid recovery of the US economy in the post-pandemic period….more

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• Working Paper No. 1021
  June 29, 2023

  Can It Be Prevented This Time?

  Giuseppe Mastromatteo and Lorenzo Esposito
  Abstract

  Since the nineties, crises have punctuated financial markets, shattering the conventional wisdom about how these markets work and how to regulate them, and forcing a deep rethinking of the supervisory…more

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• One-Pager No. 66
  April 01, 2021

  Anatomy of a Stock Market Bubble

  Frank Veneroso
  Abstract

  According to Frank Veneroso, a broad subset of today’s US stock market has become what he calls a “pure price-chasing bubble.” Examination of the history of comparable pure price-chasing bubbles…more

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• Working Paper No. 987
  March 22, 2021

  The Souk Al-Manakh

  Frank Veneroso and Mark Pasquali
  Abstract

  It is widely agreed that the Nasdaq during the dot-com era 20 years ago was a full-fledged stock market bubble. Recently, the US stock market according to many metrics has…more

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