Minsky's Moment: An Insider's View on the Economics of Hyman Minsky

Description

Based upon his life-long collaboration with Hyman Minsky, Piero Ferri explores and reconsiders Minsky's moments in the aftermath of the 'Great Recession' of 2008. He sets out the analytical and methodological foundations of Minsky's financial instability hypothesis, offering insightful comments from a unique insider's perspective. This book stresses the necessity of including what has been recently discovered about Minsky's financial instability hypothesis into his lifelong research program, in order to obtain a more complete picture of both his vision and his analytical apparatus. It seeks to move beyond a discussion of Minsky's original ideas, to verify how they are capable of meeting the challenges derived from the modern evolution of the economy. Developing a meta-model based on regime switching, Piero Ferri examines how the different financial instability hypotheses can be accounted for. Researchers and advanced students in macroeconomics and finance will greatly benefit from the exploration of how Minsky predicted the 'Great Recession', and why his work is of fundamental relevance today. Economic policy makers will also find this book to be a useful tool in discovering methodological innovations to aid further financial recovery from the 2008 economic crisis. Dedication Contents Preface 1 Introduction PART I: “IT” HAPPENED AGAIN 2 The Minsky moment and the economics of Minsky 3 A synoptic view of the financial instability hypothesis 4 An insider’s view PART II: CO-AUTHORING 5 Prices, employment, and profits • Hyman P. Minsky and Piero Ferri 6 The breakdown of the IS–LM synthesis: implications for post-Keynesian economic theory • Piero Ferri and Hyman P. Minsky 7 Market processes and thwarting systems • Piero Ferri and Hyman P. Minsky PART III: DEEPENING THE METHODOLOGY 8 Micro and macro in Minsky’s models 9 The foundations of medium-run dynamics 10 New tools for dynamics PART IV: ENTERING THE BLACK BOX 11 Drivers, adapters and constraints 12 Growth, technical change and unemployment 13 Heterogeneity in the labor market PART V: THE ECONOMICS OF MINSKY IN A DYNAMIC SETTING 14 The financial instability hypothesis, inequality and the Great Recession 15 A meta-model of the financial instability hypothesis 16 Final considerations and challenges Bibliography Index