{"id":12825,"date":"2015-12-02T13:19:28","date_gmt":"2015-12-02T18:19:28","guid":{"rendered":"http:\/\/multiplier-effect.org\/?p=12825"},"modified":"2015-12-02T13:19:28","modified_gmt":"2015-12-02T18:19:28","slug":"review-minsky-matters-and-the-next-minsky-moment","status":"publish","type":"post","link":"https:\/\/blogs.bard.edu\/multiplier-effect\/review-minsky-matters-and-the-next-minsky-moment\/","title":{"rendered":"Review: Minsky Matters and the Next Minsky Moment"},"content":{"rendered":"<p>From Edward Chancellor&#8217;s\u00a0<a href=\"http:\/\/blogs.reuters.com\/breakingviews\/2015\/11\/27\/review-another-minsky-moment-may-be-on-the-way\/\">review<\/a>\u00a0in\u00a0<em>Reuters Breakingviews<\/em>\u00a0of L. Randall Wray&#8217;s <em><a href=\"http:\/\/www.levyinstitute.org\/publications\/why-minsky-matters-an-introduction-to-the-work-of-a-maverick-economist\">Why Minsky Matters<\/a><\/em>:<\/p>\n<blockquote><p>Minsky, who taught economics at the University of Washington in St Louis before ending up at the Levy Institute at Bard College, had little time for conventional economics with its emphasis on equilibrium, rational expectations and the view that money and finance were largely irrelevant: \u201cNobody \u2018up there\u2019 understands American capitalism,\u201d he once contemptuously wrote. [&#8230;]<\/p>\n<p>When the credit crunch arrived, it provided posthumous support for Minsky\u2019s economic vision. Subprime mortgages were revealed as a classic form of Ponzi finance. Losses of securitized debt cascaded through the financial system, prompting a liquidity crisis, exactly as described in Minsky\u2019s work. The Great Moderation gave way to the Great Recession, and the Lehman bust became known as the ultimate example of a \u201cMinsky moment.\u201d<\/p>\n<p>As a result, the crisis made Minsky something of a household name beyond strictly economic circles. Unfortunately, Minsky in the original isn\u2019t an easy read. \u201cHe needs to be translated,\u201d writes Wray, in the preface to \u201cWhy Minsky Matters.\u201d As a former teaching assistant of Minsky\u2019s and colleague at the Levy Institute, Wray is perfectly positioned to perform that task. Few people understand Minsky as well as Wray. Written in clear prose, with Minsky\u2019s idiosyncratic ideas and language patiently explained, Wray provides the best general introduction to Minsky\u2019s economics.<\/p><\/blockquote>\n<p>Read the whole thing <a href=\"http:\/\/blogs.reuters.com\/breakingviews\/2015\/11\/27\/review-another-minsky-moment-may-be-on-the-way\/\">here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>From Edward Chancellor&#8217;s\u00a0review\u00a0in\u00a0Reuters Breakingviews\u00a0of L. Randall Wray&#8217;s Why Minsky Matters: Minsky, who taught economics at the University of Washington in St Louis before ending up at the Levy Institute at Bard College, had little time for conventional economics with its emphasis on equilibrium, rational expectations and the view that money and finance were largely irrelevant: [&hellip;]<\/p>\n","protected":false},"author":202,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36,25],"tags":[568,368,30,1069],"class_list":["post-12825","post","type-post","status-publish","format-standard","hentry","category-book-review","category-levy-institute","tag-book","tag-l-randall-wray","tag-minsky","tag-review"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/posts\/12825","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/users\/202"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/comments?post=12825"}],"version-history":[{"count":4,"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/posts\/12825\/revisions"}],"predecessor-version":[{"id":12829,"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/posts\/12825\/revisions\/12829"}],"wp:attachment":[{"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/media?parent=12825"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/categories?post=12825"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/tags?post=12825"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}