History, Politics and Economics
Edited by Joëlle Leclaire, Tae-Hee Jo and Jane Knodell
Joëlle J. Leclaire, Tae-Hee Jo and Jane E. Knodell In 2008, the American financial structure was put to the test. A financial crisis, the magnitude of which we had not seen since the Great Depression, shook the foundations of stability both financial and economic of the US and world economy. Granted, many underlying issues began to surface in 2006 and 2008, but it was in the fall of 2008 that we saw the most radical declines in financial asset values and the emergence of new tools used by the Federal Reserve to stop losses. This book combines a variety of chapters written to bring forward one fundamental and yet still for the most part, fleeting, truth: that is, that the financial system is inherently unstable. Hyman Minsky, the economist responsible for the financial instability hypothesis, emphasized the importance of basing any analysis of the financial system on the idea of inherent instability. Here we are, now facing overall levels of unemployment of 10 percent, which means they are much higher for certain demographic groups and certain regions, and the relationship between the instability of the financial market and the welfare of the economy has never been more clear. In the fall of 2009, we worked with a team of colleagues at Buffalo State College, to bring together a distinguished group of scholars who were studying the causes, consequences and solutions to the current financial and economic crisis. We took the lead in organizing and hosting the 4th bi-annual Cross-Border...