Publications
Public Policy Brief No. 93
| January 2008
Minsky’s Cushions of Safety
Systemic Risk and the Crisis in the U.S. Subprime Mortgage Market
In this brief, Senior Scholar Jan Kregel reviews Hyman P. Minsky’s concept of financial fragility—in short, that the structure of a capitalist economy becomes more fragile over a period of prosperity—and concludes that the current crisis is in fact the result of insufficient margins of safety based on how creditworthiness is assessed in the new “originate and distribute” financial system.
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Jan Kregel