What is Minsky All About, Anyway? Korkut Ertürk and Gökcer Özgür

The current financial crisis has been interpreted as the fulfillment of Hyman P. Minsky’s predictions by many, while others have opposed this suggestion. In this paper, the author tries to sketch uot an alternative understanding of Minsky as an evolving research agenda. He arugues that if Minskyan work means solely his own writings and their restatement, then, those who refute this current crisis as Minsky’e prediction are probably right – one cannot help but focus on what is different about the current crisis. But, if instead Minksyan refers to an evolving literature that emanate from but transcend his work, their…

Endogenous Money in the Age of Financial Liberalization Gökçer Özgür and Korkut A. Ertürk

[Working Paper No. 05/2008] The paper reports results showing a much weakened statistical relationship between total bank credit, total deposits and the broad money supply for the period after 1995 for the US, where no statistical causation can be discerned in either direction. This has been the result of the changing nature of the credit creation process where banks have acquired almost total independence in extending credit from required reserves and core deposits and an ability to circumvent the constraint posed by capital requirements through asset securitization. Because of the explosive increase in nonbank intermediation this has caused, the expansion…