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214 publications found, searching for 'Financial Instability '
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Working Paper No. 1062December 03, 2024
The Value of Money
AbstractThis 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 AnalysisJune 04, 2024
U.S. Economic Outlook: Prospects for 2024 and Beyond
AbstractIn 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. 1021June 29, 2023
Can It Be Prevented This Time?
AbstractSince 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. 66April 01, 2021
Anatomy of a Stock Market Bubble
AbstractAccording 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. 987March 22, 2021
The Souk Al-Manakh
AbstractIt 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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Working Paper No. 986March 10, 2021
Keynes’s Theories of the Business Cycle
AbstractThis paper traces the evolution of John Maynard Keynes’s theory of the business cycle from his early writings in 1913 to his policy prescriptions for the control of fluctuations in…more
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Working Paper No. 974October 05, 2020
The General Theory as “Depression Economics”?
AbstractThis paper revisits Keynes’s writings from Indian Currency and Finance (1913) to The General Theory (1936) with a focus on financial instability. The analysis reveals Keynes’s astute concerns about the…more
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Working Paper No. 972September 30, 2020
In the Long Run We Are All Herd
AbstractSince the 2008 crisis, the economics literature has shown a renewed interest in Keynes’s “beauty contest” (BC) as a fundamental aspect of the functioning of financial markets. We argue that…more
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Working Paper No. 971September 28, 2020
Ecology, Economics, and Network Dynamics
AbstractIn a seminal 1972 paper, Robert M. May asked: “Will a Large Complex System Be Stable?” and argued that stability (of a broad class of random linear systems) decreases with…more
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Working Paper No. 968September 14, 2020
The COVID-19 Crisis
AbstractThe COVID-19 crisis paralyzed huge parts of the planet in weeks. It not only infected the population but injected a gargantuan dose of uncertainty into the system. In that regard,…more
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Public Policy Brief No. 150June 03, 2020
The Impact of Technological Innovations on Money and Financial Markets
AbstractAccording to Senior Scholar Jan Kregel and Paolo Savona, attempting to maintain the status quo in the face of the introduction of some recent technological innovations—chiefly cryptocurrencies and associated instruments…more
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Policy Note No. 1March 19, 2020
When Two Minskyan Processes Meet a Large Shock
AbstractThe spread of the new coronavirus (COVID-19) is a major shock for the US and global economies. Research Scholar Michalis Nikiforos explains that we cannot fully understand the economic implications…more
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Working Paper No. 947February 06, 2020
Ages of Financial Instability
AbstractStarting from the mid-nineteenth century, this paper analyzes two periods of financial instability connected with financial globalization. The first culminates with the 1929 crisis, while the second characterizes the more…more
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Working Paper No. 933July 08, 2019
Defaultnomics
AbstractThe 2008 crisis created a need to rethink many aspects of economic theory, including the role of public intervention in the economy. On this issue, we explore the Barro-Ricardo equivalence,…more
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Policy Note No. 5November 29, 2018
Preventing the Last Crisis
AbstractTen years after the fall of Lehman Brothers and the collapse of the US financial system, most commentaries remain overly focused on the proximate causes of the last crisis and…more
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Working Paper No. 916October 02, 2018
Unconventional Monetary Policies and Central Bank Profits
AbstractThis study investigates the evolution of central bank profits as fiscal revenue (or: seigniorage) before and in the aftermath of the global financial crisis of 2008–9, focusing on a select…more
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Working Paper No. 909July 02, 2018
External Instability in Transition
AbstractThis inquiry argues that the successful completion of the transition process in the post-Soviet economies is constrained by the prevailing social structure and low levels of technological progress, both of…more
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Working Paper No. 904May 01, 2018
Corporate Debt in Latin America and its Macroeconomic Implications
AbstractThis paper provides an empirical analysis of nonfinancial corporate debt in six large Latin American countries (Argentina, Brazil, Chile, Colombia, Mexico, and Peru), distinguishing between bond-issuing and non-bond-issuing firms, and…more
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Working Paper No. 903April 16, 2018
The Economics of Instability
AbstractThe dominant postwar tradition in economics assumes the utility maximization of economic agents drives markets toward stable equilibrium positions. In such a world there should be no endogenous asset bubbles…more
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Strategic AnalysisApril 13, 2018
“America First,” Fiscal Policy, and Financial Stability
AbstractThe US economy has been expanding continuously for almost nine years, making the current recovery the second longest in postwar history. However, the current recovery is also the slowest recovery…more
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One-Pager No. 54February 06, 2018
Why the United States Will Beat China to the Next Minsky Moment
AbstractThe outgoing governor of the People’s Bank of China recently warned of a possible Chinese “Minsky moment”—Paul McCulley’s term, most recently applied to the 2007 US real estate crash that…more
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Policy Note No. 1February 06, 2018
Does the United States Face Another Minsky Moment?
AbstractIt is beginning to look a lot like déjà vu in the United States. According to Senior Scholar L. Randall Wray, the combination of overvalued stocks, overleveraged banks, an undersupervised…more
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Working Paper No. 896September 04, 2017
Minsky’s Financial Fragility
AbstractThe present paper applies Hyman P. Minsky’s insights on financial fragility in order to analyze the behavior of electricity distribution companies in Brazil from 2007 to 2015. More specifically, it…more
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Policy Note No. 2July 07, 2017
The Concert of Interests in the Age of Trump
AbstractIf the Trump administration is to fulfill its campaign promises to this age’s “forgotten” men and women, Director of Research Jan Kregel argues, it should embrace the broader lesson of…more
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