Abstract Some scholars have labeled the financial structures that faced a run during the 2007-9 Financial Crisis as ‘shadow banking system’ and have connected it to the emergence of new monetary instruments. This was the starting point for thinking about various forms of private debt as ‘shadow money’. Since then several shadow money theories have …
Abstract An excerpt from The Next Economic Disaster: Why It’s Coming and How to Avoid It. The following is an excerpt from Richard Vague’s The Next Economic Crisis: Why It’s Coming and How to Avoid It ( University of Pennsylvania Press, 2014). Richard Vague is a managing partner at Gabriel Investments and has had decades of experience …
Richard Vague on Why Large Rapid Build Ups of Private Debt Cause Financial Crises. Read More »
By Ingrid Harvold Kvangraven and Paulo L dos Santos, The New School for Social Research 1. Introduction Financial inclusion has been embraced as an important development priority by a broad range of policy markers over the past decade. National governments, the G20, international financial institutions, and philanthropic foundations have all publicly committed themselves to strategies for …
Lara Merling, Center for Economic and Policy Research and The Minskys Blog Introduction Greek public debt debacle and the bailout received by the government from the European Central Bank (ECB), the European Commission (EC), and the International Monetary Fund (IMF) – referred to collectively as the “troika” – has been making headlines for years. However, very …
Greece has a Private Debt Crisis & We Can Blame the Troika Read More »
By Andrea Terzi, Franklin University Switzerland Twice in the second half of the twentieth century, in the midst of a robust economy, economists optimistically talked about the taming and even “the death of the business cycle” based on the belief that advances in macroeconomics had reached a point of perfection. Yet, both times, the economy …
Connecting the Dots: Debt, Savings and the Need for a Fiscal Growth Policy Read More »
1. Monetary policy and the punchbowl In a famous 1955 speech, William McChesney Martin, the legendary Chairman of the Federal Reserve, declared that the Federal Reserve “is in the position of the chaperone who has ordered the punch bowl removed just when the party was really warming up.” Martin’s characterization of the Fed and monetary …
Abstract The Troika’s bailout policies have spurred a debt deflation in Greece. Instead of helping the Greek economy, they have replaced public with private debt. Lara Merling, Center for Economic and Policy Research and The Minskys Blog Introduction Greek public debt debacle and the bailout received by the government from the European Central Bank (ECB), the …
Abstract The Private Debt Project’s forum on China’s debt bubble and what it means for the future of the global economy. Essays by Yan Liang, Diana Choyleva, Christopher Balding, Henny Sender, and Richard Vague. Over the past seven years, China has experienced one of the largest and most rapid debt build-ups of modern economic history—larger …
