Arbeitspapier
The financial crisis viewed from the perspective of the "social costs" theory
This paper examines the causes and consequences of the current global financial crisis. It largely relies on the work of Hyman Minsky, although analyses by John Kenneth Galbraith and Thorstein Veblen of the causes of the 1930s collapse are used to show similarities between the two crises. K.W. Kapp's social costs theory is contrasted with the recently dominant efficient markets; hypothesis to provide the context for analyzing the functioning of financial institutions. The paper argues that, rather than operating efficiently the financial sector has been imposing huge costs on the economy-costs that no one can deny in the aftermath of the economy's collapse. While orthodox approaches lead to the conclusion that money and finance should not matter much, the alternative tradition - from Veblen and Keynes to Galbraith and Minsky - provides the basis for developing an approach that puts money and finance front and center. Including the theory of social costs also generates policy recommendations more appropriate to an economy in which finance matters.
- Sprache
-
Englisch
- Erschienen in
-
Series: Working Paper ; No. 662
- Klassifikation
-
Wirtschaft
History of Economic Thought through 1925: Socialist; Marxist
History of Economic Thought through 1925: Historical; Institutional; Evolutionary
History of Economic Thought: Macroeconomics
Current Heterodox Approaches: Historical; Institutional; Evolutionary
General Aggregative Models: Keynes; Keynesian; Post-Keynesian
Money and Interest Rates: General
Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems
Monetary Policy, Central Banking, and the Supply of Money and Credit: General
Money Supply; Credit; Money Multipliers
Monetary Policy
Information and Market Efficiency; Event Studies; Insider Trading
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
- Thema
-
Hyman Minsky
Kapp
Galbraith
Veblen
coase
theory of social costs
efficient markets hypothesis
money
finance
social efficiency
social provisioning
shadow banks
financial innovation
casino capitalism
securitization
deregulation
self-supervision
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Wray, L. Randall
- Ereignis
-
Veröffentlichung
- (wer)
-
Levy Economics Institute of Bard College
- (wo)
-
Annandale-on-Hudson, NY
- (wann)
-
2011
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Wray, L. Randall
- Levy Economics Institute of Bard College
Entstanden
- 2011
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