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Minsky's financial instability hypothesis

Minsky's financial instability hypothesis

Nikolaidi, Maria ORCID: 0000-0002-8188-5482 (2021) Minsky's financial instability hypothesis. In: Ferri, Giovanni and D’Apice, Vincenzo, (eds.) A Modern Guide to Financial Shocks and Crises. Economics 2021 . Elgar, Cheltenham, UK; Northampton, Massachusetts, pp. 22-44. ISBN 978-1789904512 ; 978-1789904529 (doi:

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Since the Global Financial Crisis, Minsky’s Financial Instability Hypothesis (FIH) has been receiving a growing attention in macroeconomic analyses and policy making. In this contribution I discuss the key dimensions and extensions of Minsky’s FIH, focusing on how Minskyan frameworks have analysed the drivers of endogenous instability and cycles associated with corporate, household and external debt. I cover recent theoretical and empirical developments in the Minskyan literature and emphasise the unique evolutionary macrofinancial aspects of Minsky’s approach. I also analyse the policy implications of Minsky’s FIH and explain how Minsky’s analysis can be used for our understanding of climate-induced financial instability, in light of the recent developments in the area of climate-related financial risks.

Item Type: Book Section
Additional Information: This is a draft chapter/article. The final version is available in [insert book title] edited by [insert editor(s) or author(s)], published in 2021, Edward Elgar Publishing Ltd - MP
Uncontrolled Keywords: Minsky; financial instability; post-Keynesian economics; climate change
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor > HD61 Risk Management
Faculty / School / Research Centre / Research Group: Faculty of Business
Faculty of Business > Department of International Business & Economics
Faculty of Business > Institute of Political Economy, Governance, Finance and Accountability (IPEGFA)
Faculty of Business > Institute of Political Economy, Governance, Finance and Accountability (IPEGFA) > Greenwich Political Economy Research Centre (GPERC)
Last Modified: 02 Nov 2022 09:23

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