Fragile finance : debt, speculation and crisis in the age of global credit / Anastasia Nesvetailova.

Format:

Book

Author/Creator:

Nesvetailova, Anastasia.

Series:

Palgrave Macmillan studies in banking and financial institutions

Language:

English

Subjects (All):

Minsky, Hyman P.

Financial crises.

Physical Description:

xi, 190 pages ; 23 cm.

Place of Publication:

Basingstoke [England] ; New York : Palgrave Macmillan, 2007.

Summary:

The financial implosions of the 1990s threw millions of people into poverty and misery. Unlike earlier outbreaks of financial instability, the crises of the late 1990s were not confined to the peripheral regions of the global economy. To the bewilderment of many, distress soon spread to the seemingly well-governed, advanced capitalist world. The difficulties faced by high-profile firms like LTCM, Enron, WorldCom, Parmalat, Fannie Mae and Freddie Mac, along with the bursting of the Nasdaq bubble, accentuated the fragility of finance, and challenged conventional views on crisis and its management. What, then, are the causes of fragile finance today? How can we better understand the nature of financial crisis in the age of globalization? What lessons can be drawn from recent experience? Exploring various approaches to understanding financial fragility and crisis, this book seeks to provide answers to these questions.

Contents:

1 The Rise of Fragile Finance 9

The post-World War II international financial regime 10

Deregulation and privatisation 11

Financial innovation 16

Finance as a global system 20

2 A Theory of Fragile Finance 25

Efficient market theory of finance: Crisis? What crisis? 26

Why EMT is not a theory of crisis 29

Mutation of the orthodoxy 33

3 Keynesian and Heterodox Theories of Financial Crises 42

Money, finance and speculation 43

International political economy and the 'disjuncture paradigm' 45

The errors of the disjuncture thesis 51

4 Hyman Minsky and Fragile Finance 56

The financial instability hypothesis 57

Minskyan financial fragility in the international context 64

5 Dilemmas and Paradoxes of Fragile Finance 72

Destabilising stability 72

The illusions of liquidity 74

A new type of crisis 82

6 The East Asian Crisis: A Minskyan View 85

The rise of financial fragility in East Asia 87

The Thai crisis 91

The South Korean crisis 96

Crisis contagion 99

Illiquidity and Minskyan debt deflation in East Asia 101

7 Ponzi Capitalism Russian-style 105

Russian laissez-faire 106

Speculation, Ponzi finance and debt 112

The crisis 116

A Minskyan crisis? 126

8 Ponzi Finance Goes Global 128

Brazil, 1999 130

Turkey, 2000-2001 132

Argentina, 2001 133

Financial fragility in the emerging markets: some lessons 134

Minskyan crises in the U.S. economy 136

After the crises 142

Central banks and illiquidity 147

Towards a new post-Keynesian financial architecture? 151.

Notes:

Includes bibliographical references (pages 156-178) and indexes.

ISBN:

9780230006904

0230006906

OCLC:

153554083