Friction in financials: Old habits die hard John Llewellyn Russell Jones Winter 2017

The The logic of Minskyism to crises … 2007-2009 global financial crisis (GFC) is merely the latest in a litany stretching back centuries to the very origins of money and financial markets.1 Perhaps the most coherent framework with which to understand this enduring, if depressing, cycle can be ascribed to Hyman Minsky, a US economist whose theory of the nature of financial instability proved Crise. [...] The median direct fiscal cost (mainly bank In August 2007, against a background of large-scale, unsustainable, global macroeconomic imbalances, and a recapitalisations and asset purchases) of the systemic financial crises since 1970 is put at some reversal of monetary policy course, associated bubbles burst and market liquidity evaporated, sending the 7% of a country’s GDP and 15% of financial sys. [...] The The logic of Minskyism to crises … 2007-2009 global financial crisis (GFC) is merely the latest in a litany stretching back centuries to the very origins of money and financial markets.1 Perhaps the most coherent framework with which to understand this enduring, if depressing, cycle can be ascribed to Hyman Minsky, a US economist whose theory of the nature of financial instability proved Crise. [...] Challenges and opportunities ‘Credit gaps’, or the development of credit ratios relative to a dynamic trend, provide perhaps The financial sector will be subjected, over the coming decade and beyond, to a range of the best guide to potential vulnerabilities. [...] Challenges and opportunities ‘Credit gaps’, or the development of credit ratios relative to a dynamic trend, provide perhaps The financial sector will be subjected, over the coming decade and beyond, to a range of the best guide to potential vulnerabilities.