IDEAS home Printed from https://ideas.repec.org/a/lif/jrgelg/v4y2015p205-211.html
   My bibliography  Save this article

Financial Fragility and Central Bank: Are Minsky’s Crisis and Austrian Business Cycle are Complementary?

Author

Listed:
  • François Facchini

    (Faculty Jean Monnet, University of Paris Sud (RITM), University Pais-Saclay, 54 Boulevard Desgranges, B.P. 104, 92331 Sceaux Cedex & associate to Centre d’Economie de la Sorbonne University of Paris 1, France)

Abstract

This article explains why Minsky’s post-keynesian explanation tells only one side of the crisis’ story. Indeed, the financial fragility of markets explains mainly the activity of Central bank i.e. the lender of last resort which increases the moral hazard phenomena and the socialization of risks. The regulated capitalism is, in this perspective, the cause of market instability and financial fragility. Indeed, moral hazard encourages commercial banks to take risks. In that respect, the economic policies implemented to manage the crisis of 2008 are inadequate.

Suggested Citation

  • François Facchini, 2015. "Financial Fragility and Central Bank: Are Minsky’s Crisis and Austrian Business Cycle are Complementary?," Journal of Reviews on Global Economics, Lifescience Global, vol. 4, pages 205-211.
    • Handle: RePEc:lif:jrgelg:v:4:y:2015:p:205-211
    as

    Download full text from publisher

    File URL: http://www.lifescienceglobal.com/independent-journals/journal-of-reviews-on-global-economics/volume-4/85-abstract/jrge/1889-abstract-financial-fragility-and-central-bank-are-minsky-s-crisis-and-austrian-business-cycle-are-complementary
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gerasimos T. Soldatos & Erotokritos Varelas, 2023. "Are Banks Too Many? A Theoretical Possibility and a Policy Issue," Journal of Economic Analysis, Anser Press, vol. 2(1), pages 36-52, February.
    2. Facchini François, 2016. "The Hayek-Keynes Macro Debate Continues," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 22(1), pages 1-13, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lif:jrgelg:v:4:y:2015:p:205-211. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Faisal Ameer Khan (email available below). General contact details of provider: http://www.lifescienceglobal.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.