Arbeitspapier
Lessons from the subprime meltdown
This paper uses Hyman P. Minsky's approach to analyze the current international financial crisis, which was initiated by problems in the American real estate market. In a 1987 manuscript, Minsky had already recognized the importance of the trend toward securitization of home mortgages. This paper identifies the causes and consequences of the financial innovations that created the real estate boom and bust. It examines the role played by each of the key playersincluding brokers, appraisers, borrowers, securitizers, insurers, and regulatorsin creating the crisis. Finally, it proposes short-run solutions to the current crisis, as well as longer-run policy to prevent it (a debt deflation) from happening again.
- Language
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Englisch
- Bibliographic citation
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Series: Working Paper ; No. 522
- Classification
-
Wirtschaft
General Aggregative Models: Keynes; Keynesian; Post-Keynesian
Business Fluctuations; Cycles
Financial Markets and the Macroeconomy
Central Banks and Their Policies
Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
- Subject
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Hymann Minsky
Financial Instability
Mortgage-backed Securities
Subprime Mortgages
Finanzmarktkrise
Hypothek
Securitization
USA
- Event
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Geistige Schöpfung
- (who)
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Wray, L. Randall
- Event
-
Veröffentlichung
- (who)
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Levy Economics Institute of Bard College
- (where)
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Annandale-on-Hudson, NY
- (when)
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2007
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Wray, L. Randall
- Levy Economics Institute of Bard College
Time of origin
- 2007
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