in Cambridge Journal of Economics
March 2010; p ublished online December 2009 .
Journal Article. Subjects: Financial Regulation; Macroeconomics: Consumption, Saving, Production, Employment, and Investment; General Aggregative Models; Prices, Business Fluctuations, and Cycles; Banking. 7388 words.
Minsky's financial-instability model suggests that financial crises can be resolved efficiently with lender-of-last-resort and big-government interventions. The crisis that began in 2007...