Integrative literature review of the financial fragility hypothesis proposed by Minsky
Keywords:
Minsky - Financial Fragility - Public sector - Integrative Review.
Abstract
This article conducts an Integrative Literature Review on the Financial Fragility Hypothesis presented by Minsky and on Financial Fragility Applied to the Public Sector. Twenty papers were chosen that addressed the proposed theme in both quantitative and qualitative procedures. The topics discussed ways of measuring financial fragility, effects on fiscal policy and the need for regulation, relationships between investment, expectations of cash flows, the influence of interest rates and indebtedness on firms and financial instability. The integration reinforced the conceptual aspects and the propositions presented by Minsky, expanding in an integrated way the understanding of his theoretical assumptions regarding financial fragility, addressing the causes, observations and economic and institutional consequences, in addition to signaling the insufficiencies of more empirical and for the public sector.
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References
ANDRIANOVA, S.; DEMETRIADES, P. O. Financial Development and Financial Fragility: Two Sides of the Same Coin?. Comparative Economic Studies, 60(1), 54-68, 2018.
ARESTIS, P., GLICKMAN, M. Financial crisis in Southeast Asia: Dispelling illusion the Minskyan way. Cambridge Journal of Economics, 26 (2), pp. 237-260, 2002.
ARGITIS, G.; NIKOLAIDI, M. Debt crisis, fiscal austerity and the financial fragility and instability in the Greek economy. 2016.
BARRETT, A. B. Stability of zero-growth economics analysed with a Minskyan model. Ecological Economics, 146, 228-239, 2018.
BESHENOV, S.; ROZMAINSKY, I. Hyman Minsky's financial instability hypothesis and the Greek debt crisis. Russian Journal of Economics, 1(4), 419-438, 2015.
BEZEMER, D. J. Post-socialist financial fragility: the case of Albania. Cambridge Journal of Economics, 25(1), 1-23, 2001.
BARRO, R. On the determination of the public debt. Journal of Political Economy 87 (5), 940-71, 1979.
BRASIL. Lei Complementar nº 101 de 04 de maio de 2000. Estabelece normas de finanças públicas voltadas para a responsabilidade na gestão fiscal e dá outras providências. 2000. Disponível em: < http://www.planalto.gov.br/ccivil_03/leis/LCP/Lcp101.htm >. Acesso em: 08 abr. 2019.
CHARLES, S. Teaching Minsky's financial instability hypothesis: a manageable suggestion. Journal of Post Keynesian Economics, 31(1), 125-138, 2008.
COMITÊ DE PRONUNCIAMENTOS CONTÁBEIS – CPC. Pronunciamento Conceitual Básico CPC 00 (R1) – Estrutura Conceitual para Elaboração e Divulgação de Relatório Contábil-Financeiro. 2011.
DAVIDSON, P. Is the current financial distress caused by the subprime mortgage crisis a Minsky moment? Or is it the result of attempting to securitize illiquid non-commercial mortgage loans?. Journal of Post Keynesian Economics, 30(4), 669-676, 2008.
DE PAULA, L. F. R.; ALVES Jr, A. J. External financial fragility and the 1998-1999 Brazilian currency crisis. Journal of Post Keynesian Economics, 22(4), 589-617, 2000.
EGGERTSSON, G. B.; KRUGMAN, P. Debt, deleveraging, and the liquidity trap: A Fisher-Minsky-Koo approach. The Quarterly Journal of Economics, 127(3), 1469-1513, 2012.
FALAHATI, K. Systemic Characteristics of Financial Instability. Journal of Economic Issues, 53(1), 155-192, 2019.
FERRARI-FILHO, F; TERRA, F.H.B.; CONCEIÇÃO, O.A.C. The financial fragility hypothesis applied to the public sector: an analysis for Brazil’s economy from 2000 to 2008. Journal of Post Keynesian Economics, vol. 33, n. 1, 151-168, 2010.
FOLEY, D. Financial fragility in developing economies. Development Economics and Structuralist Macroeconomics, Aldershot: Edward Elgar, 2003.
GALBRAITH, James et al. The generalized Minsky moment. In: Conference Proceedings of the 17 th Annual Minsky Conference on the State of the US and World economics: credit, markets and the real economy–is the financial system working. p. 22-32, 2008.
GONZÁLEZ A. H. Economia e Sociedade, Campinas, v. 26, Número Especial, p. 991-1023, 2017.
GONZÁLEZ, A.; PÉREZ-CALDENTEY, E. The financial instability hypothesis and the paradox of debt: a microeconometric approach for Latin America. Review of Keynesian Economics, 6(3), 387-410, 2018.
KEEN, S. Finance and economic breakdown: modeling Minsky’s “financial instability hypothesis”. Journal of Post Keynesian Economics, 17(4), 607-635, 1995.
MINSKY, H. P. (1977). The financial instability hypothesis: An interpretation of Keynes and an alternative to “standard” theory. Challenge, 20(1), 20-27.
_______. The legacy of Keynes. The Journal of Economic Education, 16(1), 5-15, 1985.
_______. Stabilizing an Unstable Economy. Twentieth Century Fund Report: New Heaven. 1986.
_______. The Financial Instability Hypothesis. The Jerome Levy Economics Institute Working Paper No. 74. May, 1992.
_______. Estabilizando uma economia instável. Novo Século: Osasco, 2013.
MUSGRAVE, R. A. Teoria das finanças públicas: um estudo de economia Governamental. Atlas: São Paulo, 1973.
PAPADIMITRIOU, D. B.; WRAY, L. R. Minsky's analysis of financial capitalism. The Jerome Levy Economics Institute working paper, (275), 1999.
PICOLOTTO, V. D. C. Política fiscal e endividamento público em um contexto de estado subnacional: uma perspectiva pós-keynesiana para o Rio Grande do Sul no período 1995-2014, 2016.
TAYLOR, L.; O'CONNELL, S. A. A Minsky crisis. The Quarterly Journal of Economics, 100(Supplement), 871-885, 1985.
TERRA, F. H. B.; FERRARI-FILHO, F. A hipótese de fragilidade financeira aplicada ao setor público: uma análise para a economia brasileira no período de 2000-2009, Revista Economia, v. 12, n. 3, p. 497-516, 2011.
TERRA, F. H. B.; FERRARI-FILHO, F. Public Sector Financial Fragility Index: an analysis of the Brazilian federal government from 2000 to 2016. Journal of Post Keynesian Economics, 1-25. 2020.
TORRACO, R. J. Writing Integrative Literature Reviews: Guidelines and Examples. Human Resource Development Review, v.4, n.3, 2005.
_________. Writing integrative literature reviews: Using the past and present to explore the future. Human Resource Development Review, v. 15, n. 4, p. 404-428.ap, 2016.
TORRES FILHO, E. T.; MARTINS, N. M.; MIAGUTI, C. Y. Minsky’s financial fragility: an empirical analysis of electricity distribution firms in Brazil (2007–2015). Journal of Post Keynesian Economics, 42(1), 144-168, 2019.
VERCELLI, A.A Perspective on Minsky Moments: Revisiting the Core of the Financial Instability Hypothesis. Review of Political Economy, 23 (1), pp. 49-67, 2011.
WHALEN, C. J. Integrating Schumpeter and Keynes: Hyman Minsky’s theory of capitalist development. Journal of Economic issues, 35(4), 805-823, 2001.
WHITTEMORE, R.; KNAFL, K. . The integrative review: updated methodology. Journal of advanced nursing, 52(5), 546-553, 2005.
ARESTIS, P., GLICKMAN, M. Financial crisis in Southeast Asia: Dispelling illusion the Minskyan way. Cambridge Journal of Economics, 26 (2), pp. 237-260, 2002.
ARGITIS, G.; NIKOLAIDI, M. Debt crisis, fiscal austerity and the financial fragility and instability in the Greek economy. 2016.
BARRETT, A. B. Stability of zero-growth economics analysed with a Minskyan model. Ecological Economics, 146, 228-239, 2018.
BESHENOV, S.; ROZMAINSKY, I. Hyman Minsky's financial instability hypothesis and the Greek debt crisis. Russian Journal of Economics, 1(4), 419-438, 2015.
BEZEMER, D. J. Post-socialist financial fragility: the case of Albania. Cambridge Journal of Economics, 25(1), 1-23, 2001.
BARRO, R. On the determination of the public debt. Journal of Political Economy 87 (5), 940-71, 1979.
BRASIL. Lei Complementar nº 101 de 04 de maio de 2000. Estabelece normas de finanças públicas voltadas para a responsabilidade na gestão fiscal e dá outras providências. 2000. Disponível em: < http://www.planalto.gov.br/ccivil_03/leis/LCP/Lcp101.htm >. Acesso em: 08 abr. 2019.
CHARLES, S. Teaching Minsky's financial instability hypothesis: a manageable suggestion. Journal of Post Keynesian Economics, 31(1), 125-138, 2008.
COMITÊ DE PRONUNCIAMENTOS CONTÁBEIS – CPC. Pronunciamento Conceitual Básico CPC 00 (R1) – Estrutura Conceitual para Elaboração e Divulgação de Relatório Contábil-Financeiro. 2011.
DAVIDSON, P. Is the current financial distress caused by the subprime mortgage crisis a Minsky moment? Or is it the result of attempting to securitize illiquid non-commercial mortgage loans?. Journal of Post Keynesian Economics, 30(4), 669-676, 2008.
DE PAULA, L. F. R.; ALVES Jr, A. J. External financial fragility and the 1998-1999 Brazilian currency crisis. Journal of Post Keynesian Economics, 22(4), 589-617, 2000.
EGGERTSSON, G. B.; KRUGMAN, P. Debt, deleveraging, and the liquidity trap: A Fisher-Minsky-Koo approach. The Quarterly Journal of Economics, 127(3), 1469-1513, 2012.
FALAHATI, K. Systemic Characteristics of Financial Instability. Journal of Economic Issues, 53(1), 155-192, 2019.
FERRARI-FILHO, F; TERRA, F.H.B.; CONCEIÇÃO, O.A.C. The financial fragility hypothesis applied to the public sector: an analysis for Brazil’s economy from 2000 to 2008. Journal of Post Keynesian Economics, vol. 33, n. 1, 151-168, 2010.
FOLEY, D. Financial fragility in developing economies. Development Economics and Structuralist Macroeconomics, Aldershot: Edward Elgar, 2003.
GALBRAITH, James et al. The generalized Minsky moment. In: Conference Proceedings of the 17 th Annual Minsky Conference on the State of the US and World economics: credit, markets and the real economy–is the financial system working. p. 22-32, 2008.
GONZÁLEZ A. H. Economia e Sociedade, Campinas, v. 26, Número Especial, p. 991-1023, 2017.
GONZÁLEZ, A.; PÉREZ-CALDENTEY, E. The financial instability hypothesis and the paradox of debt: a microeconometric approach for Latin America. Review of Keynesian Economics, 6(3), 387-410, 2018.
KEEN, S. Finance and economic breakdown: modeling Minsky’s “financial instability hypothesis”. Journal of Post Keynesian Economics, 17(4), 607-635, 1995.
MINSKY, H. P. (1977). The financial instability hypothesis: An interpretation of Keynes and an alternative to “standard” theory. Challenge, 20(1), 20-27.
_______. The legacy of Keynes. The Journal of Economic Education, 16(1), 5-15, 1985.
_______. Stabilizing an Unstable Economy. Twentieth Century Fund Report: New Heaven. 1986.
_______. The Financial Instability Hypothesis. The Jerome Levy Economics Institute Working Paper No. 74. May, 1992.
_______. Estabilizando uma economia instável. Novo Século: Osasco, 2013.
MUSGRAVE, R. A. Teoria das finanças públicas: um estudo de economia Governamental. Atlas: São Paulo, 1973.
PAPADIMITRIOU, D. B.; WRAY, L. R. Minsky's analysis of financial capitalism. The Jerome Levy Economics Institute working paper, (275), 1999.
PICOLOTTO, V. D. C. Política fiscal e endividamento público em um contexto de estado subnacional: uma perspectiva pós-keynesiana para o Rio Grande do Sul no período 1995-2014, 2016.
TAYLOR, L.; O'CONNELL, S. A. A Minsky crisis. The Quarterly Journal of Economics, 100(Supplement), 871-885, 1985.
TERRA, F. H. B.; FERRARI-FILHO, F. A hipótese de fragilidade financeira aplicada ao setor público: uma análise para a economia brasileira no período de 2000-2009, Revista Economia, v. 12, n. 3, p. 497-516, 2011.
TERRA, F. H. B.; FERRARI-FILHO, F. Public Sector Financial Fragility Index: an analysis of the Brazilian federal government from 2000 to 2016. Journal of Post Keynesian Economics, 1-25. 2020.
TORRACO, R. J. Writing Integrative Literature Reviews: Guidelines and Examples. Human Resource Development Review, v.4, n.3, 2005.
_________. Writing integrative literature reviews: Using the past and present to explore the future. Human Resource Development Review, v. 15, n. 4, p. 404-428.ap, 2016.
TORRES FILHO, E. T.; MARTINS, N. M.; MIAGUTI, C. Y. Minsky’s financial fragility: an empirical analysis of electricity distribution firms in Brazil (2007–2015). Journal of Post Keynesian Economics, 42(1), 144-168, 2019.
VERCELLI, A.A Perspective on Minsky Moments: Revisiting the Core of the Financial Instability Hypothesis. Review of Political Economy, 23 (1), pp. 49-67, 2011.
WHALEN, C. J. Integrating Schumpeter and Keynes: Hyman Minsky’s theory of capitalist development. Journal of Economic issues, 35(4), 805-823, 2001.
WHITTEMORE, R.; KNAFL, K. . The integrative review: updated methodology. Journal of advanced nursing, 52(5), 546-553, 2005.
Published
2023-12-04
How to Cite
Caríssimo, C. (2023). Integrative literature review of the financial fragility hypothesis proposed by Minsky. A Economia Em Revista - AERE, 31(1). https://doi.org/10.4025/econrev.v31i1.67434
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Artigos
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