The Rise and Fall of Money Manager Capitalism

Minsky's half century from world war two to the great recession

By Eric Tymoigne, L. Randall Wray

© 2013 – Routledge

300 pages | 91 B/W Illus.

Purchasing Options:
Hardback: 9780415591935
pub: 2013-07-26
US Dollars$160.00
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About the Book

The book studies the trends that led to the worst financial crisis since the Great Depression, as well as the unfolding of the crisis, in order to provide policy recommendations to improve financial stability. The book starts with changes in monetary policy and income distribution from the 1970s. These changes profoundly modified the foundations of economic growth in the US by destroying the commitment banking model and by decreasing the earning power of households whose consumption has been at the core of the growth process.

The main themes of the book are the changes in the financial structure and income distribution, the collapse of the Ponzi process in 2007, and actual and prospective policy responses. The objective is to show that Minsky’s approach can be used to understand the making and unfolding of the crisis and to draw some policy implications to improve financial stability.

Table of Contents

Introduction: The Growth of Financial Fragility and the Great Depression 1. The Minskian Framework 2. From Management Capitalism to Money Manager Capitalism 3. The Great Moderation and the Growth of Ponzi Finance 4. Policy Implications for Finance 5. Policy Implications for Employment Conclusion: The Minsky Half-Century

About the Authors

Eric Tymoigne is Assistant Professor of Economics at Lewis and Clark College. His book Central Banking, Asset Prices, and Financial Fragility was published by Routledge in 2009.

L. Randall Wray is a Professor of Economics at the University of Missouri-Kansas City.

About the Series

Routledge Critical Studies in Finance and Stability

The 2007-8 Banking Crash has induced a major and wide-ranging discussion on the subject of financial (in)stability and a need to revaluate theory and policy. The response of policy-makers to the crisis has been to refocus fiscal and monetary policy on financial stabilisation and reconstruction. However, this has been done with only vague ideas of bank recapitalisation and ‘Keynesian’ reflation aroused by the exigencies of the crisis, rather than the application of any systematic theory or theories of financial instability.

Routledge Critical Studies in Finance and Stability, edited by Jan Toporowski from SOAS, University of London covers a range of issues in the area of finance including instability, systemic failure, financial macroeconomics in the vein of Hyman P. Minsky, Ben Bernanke and Mark Gertler, central bank operations, financial regulation, developing countries and financial crises, new portfolio theory and New International Monetary and Financial Architecture.

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Subject Categories

BISAC Subject Codes/Headings:
BUS000000
BUSINESS & ECONOMICS / General
BUS027000
BUSINESS & ECONOMICS / Finance
BUS039000
BUSINESS & ECONOMICS / Economics / Macroeconomics
BUS069000
BUSINESS & ECONOMICS / Economics / General