Financial Crisis and Policy Proposals in the Context of the Financial Instability Hypothesis of Hyman Minsky

Yıl 2012, , 189 - 212, 01.02.2012

Erkan Tokucu

https://doi.org/10.1501/SBFder_0000002249

Cited By: 9

Öz

The last financial crisis, which started in the US and caused a chain reaction around the world, demonstrated one more time that the mainstream economic's spolicy proposals have not been able to solve the problems of the capitalist system. Hence, many economists and policymakers have attempted to define today's financial capitalism and to improve new policy proposals in line with the new financial era. The workings of Hyman Minsky and many Post Keynesian economists are among those which try to look at the capitalist system in a broader perpective and to offer suggestions to solve systemic problems. In this article, it will be investigated how financial relationships and financial fragility are analyzed and identified and what policy proposals are offered in the Post Keynesian economics and Minsky’s workings. For this, firstly, the theoretical bases of the school of Post Keynesian Economics will be given. Secondly, the financial instability hypothesis and the causes of the financial fragility will be explained from the points of view of Hyman Minsky. Finally, Minskyan policy proposals will be presented.

Anahtar Kelimeler

Capitalism, Post Keynesian economics, Hyman Minsky, financial instability hypothesis, money manager capitalism

Hyman Mınsky'nin Finansal İstikrarsızlık Hipotezi Çerçevesinde Finansal Krizler ve Çözüm Önerileri

Öz

Amerika Birlesik Devletleri’nde başlayan ve tüm dünyada zincirleme etkilere neden olan son finansal kriz bir kez daha gösterdi ki, yerleşik iktisadın politika önerileri kapitalizmin sorunlarını çözme gücüne sahip değil. Bundan dolayı, birçok iktisatçı ve politika-yapıcısı günümüz finansal kapitalizmini en uygun şekilde tanımlamak ve yeni finansal çağa uygun politikalar üretebilmek için çaba göstermektedir. Hyman Minsky’nin ve Post Keynesyen iktisatçıların çalışmaları da kapitalist sisteme ve sistemde yaşanan krizlere daha geniş bir perpektiften bakan ve sistemik problemlere çözüm önerileri sunmaya çalışan çalışmalar arasında yer almaktadır. Bu makalede, Minsky ve Post Keynesyen iktisatçıların günümüz finansal kapitalist sistemini ve sistemdeki kırılganlıkları nasıl tanımladıkları ve analiz ettikleri ve çözüm önerisi olarak neleri önerdikleri konuları irdelenecektir. Bunun için öncelikle Post Keynesyen iktisadın teorik arka planı verilecek ve daha sonra finansal istikrarsızlık analizi Minsky’nin çalısmaları baz alınarak açıklanacaktır.

Anahtar Kelimeler

Kapitalizm, Post Keynesyen iktisat, Hyman Minsky, finansal istikrarsızlık hipotezi, para yöneten kapitalizm

Kaynakça

• Arestis, Philip (1997), Money, Pricing, Distribution and Economic Integration, Macmillan Press Ltd.
• Carvalho, Fernando ve J. Cardim (1992), Mr. Keynes and The Post Keynesians, Edward Elgar Publishing Company.
• Davidson, Paul (1991), “Is Probability Theory Relevant for Uncertainty? A Post Keynesian Perspective”, Journal of Economic Perspectives, 5, (1).
• Davidson, Paul (1994), Post Keynesyen Macro Economic Theory (A Foundation for Successful Economic Policies for Twenty-Firsth Century), Edward Elgar Publishing Company.
• Dillard, Dudley (1987), “Money as an Institution of Capitalism”, Journal of Economic Issues, 21 (4).
• Filho, Fernando Ferrary ve Octavio Conceiçao (2005), “The Concept of Uncertainty in Post Keynesian Theory and in Institutional Economics”, Journal of Economic Issues, 39 (3).
• Fontana Giuseppe ve Bill Gerrard (2004), “A Post Keynesian Theory of Decision Making Under Uncertainty”, Journal of Economic Psychology, v. 25.
• Fullwiler Scott T. (2005), “Macroeconomic Stabilization Through an Employer of Last Resort”, Center For Full Employment and Price Stability, Working Paper, No.44, www.cfeps.org (12.03.2012).
• Itoh, Makoto ve Costas, Lapavitsas (1999), Political Economy of Money and Finance, Macmillan Pres Ltd.
• Kaboub, Fadhel (2007), “Employment Guarantee Programs: A Survey of Theories and Policy Experiences”, The Levy Economics Institute of Bard Collage, Working Paper, No.498.
• Kregel, Jan A. (1998a), “Yes ‘It’ Did Happen Again – A Minsky Crisis Happened in Asia”, The Jeromy Levy Economics Institute of Bard Collage, Working Paper, No. 234.
• Kregel, Jan A. (1998b), “Aspects of a Post Keynesian Theory of Finance”, Journal of Post Keynesian Economics, Vol.21, No.1.
• Lavoie, Marc (1984), “The Endogenous Flow of Credit and The Post Keynesian Theory of Money”, Journal of Economic Issues, 18 (3).
• Minsky, Hyman P. (1957), “Central Banking and Money Market Changes”, The Quarterly Journal of Economics, 71, (2).
• Minsky, Hyman P. (1982), “The Financial-Hypothesis: Capitalist Processes and the Behavior of the Economy”, http://digitalcommons.bard.edu/hm_archive/282. (17.04.2012).
• Minsky, Hyman P. (1985), “A Post-Keynesian Analysis of Financial Markets”, Hyman P. Minsky Archive, Paper 22, http://digitalcommons.bard.edu/hm_archive/22. (15.10.2011).
• Minsky, Hyman P. (1986). Stabilizing An Unstable Economy, The Second Edition, Mc-Graw Hill Company, New York, USA.
• Minsky, Hyman P. (1992a), “The Financial Instability Hypothesis”, The Jerome Levy Economic Institute of Bard College, Working Paper, No.74.
• Minsky, Hyman P. (1992b), "The Structure of Financial Institutions and the Dynamic Behavior of the Economy", Hyman P. Minsky Archive, Paper 178, http://digitalcommons.bard.edu/hm_archive/178 (15.10.2011).
• Minsky, Hyman P. (1993a), “Chapters for Modern Money: Preconditions for a Successful Capitalism”, http://digitalcommons.bard.edu/hm_archive/79 (20.10.2011).
• Minsky, Hyman P. (1993b), “Blueprint for Financial Reform”, Hyman P. Minsky Archive, Paper 165, http://digitalcommons.bard.edu/hm_archive/165 (15.10.2011).
• Minsky, Hyman P. (1995), “Sources of Financial Fragility: Financial Factors in the Economics of Capitalism”, http://digitalcommons.bard.edu/hm_archive/69 (20.10.2011).
• Minsky, Hyman P. (1996a), “Uncertainty and The Institutional Structure of Capitalist Economies”, Hyman P. Minsky Archive, Paper 24, http://digitalcommons.bard.edu/hm_archive/24 (20.10.2011).
• Minsky, Hyman P., Dimitri B. Papadimitriou, Ronnie J. Philips ve L. Randall Wray (1993), “Community Development Banking – A Proposal to Establish a Nationwide System of Community Development Banks”, The Levy Economics Institute of Bard College, Public Policy Brief, No.3.
• Minsky, Hyman P. ve Charles, J. Whalen (1996), “Institutional Prerequisities for Successful Capitalism”, The Levy Economics Institute of Bard College, Working Paper, No. 165.
• Munaz, Jesus (2011), “Ortodoxs Versus Heterodoks (Minskyan) Perpectives of Financial Crises: Explosion in the 1990s versus Implosion in the 2000s”, The Levy Economic Institute of Bard College, Working Paper, No.695.
• Papadimitriou, Dimitri B. ve Randall, Wray (1999), “Minsky’s Analysis of Financial Capitalism”, The Jerome Levy Economics Institute of Bard Collage, Working Paper, No.275.
• Ritzmann, Franz (1999), “Money, a Substitute for Confidence? Vaughan to Keynes and Beyond”, The American Journal of Economics and Sociology, 58 (2).
• Rochon, Louis-Philippe (1997), “Keynes’s Finance Motive: A Re-assessment. Credit, Liquidity Preference and The Rate of Interest”, Review of Political Economy, 9 (3).
• Rogers, Colin, (1989), Money, Interest and Capital (A Study in the Foundations of Monetary Theory), Cambridge University Press.
• Rotheim, Roy J. (1999), “Post Keynesian Economics and Realist Philisophy”, Journal of Post Keynesian Economics, 22 (1).
• Skidelsky, Robert (2010), Keynes – The Return of the Master, Public Affairs, New York, USA.
• Smithin, John (1994), Controversies in Monetary Economics, Edward Elgar Publishing Company.
• Tymoigne, Eric (2008), “Minsky and Economic Policy: ‘Keynesianism’ All Over Again?”, The Levy Economics Institute of Bard College, Working Paper, No. 547.
• Tymoigne, Eric (2009), “A Critical Assessment of Seven Reports on Financial Reform: A Minskyan Perspective, Part I: Key Consepts and Main Points”, The Levy Economics Institute of Bard College, Working Paper, No.574.1.
• Wray, Randall L. (2007), “The Employer of Last Resort Programme: Could It Work for Developing Countries?”, ILO Publications, Economic and Labour Market Papers, Working Paper, No.2007/5, http://www.ilo.org/empelm/what/pubs/lang-en/docName--WCMS_113904 /index.htm.
• Wray, Randall L. (2011a), "Minsky's Money Manager Capitalism and the Global Financial Crisis", International Journal of Political Economy, 40 (2).
• Wray, Randall L. (2011b), “A Minskyan Road to Financial Reform”, The Levy Economics Institute of Bard College, Working Paper, No. 655.