Great Leap Forward

Minsky on the BBC

In case you have not listened to it, this program on Minsky is actually quite good. Pay attention to the clips from Minsky’s own talks at Levy, and also to the praise coming from Larry Meyer–former colleague of Minsky at WashU (I was Meyer’s TA; he also funded our softball team, which was pretty good so far as a team made up of economists goes; and he went on to the Fed’s BOG). Minsky helped to hire Meyer and while Meyer was always supportive I don’t think he really “got it” until the crisis.

As readers of this blog probably already know, I think that it is a bit misleading to call this crisis the “Minsky moment” or the “Minsky crisis”. It was the culmination of the “Minsky half-century” during which Wall Street (re)-financialized the economy, creating Money Manager Capitalism. I gave background to the reporter for this story, but the BBC chose to focus on the somewhat more conventional interpretation. Still, this is very worthwhile listening:

Did Hyman Minsky find the secret behind financial crashes?

Analysis: Why Minsky Matters is broadcast on BBC Radio 4 at 20:30 GMT, 24 March 2014

5 Responses to “Minsky on the BBC”

BenJohannsonMarch 27th, 2014 at 10:17 am

Thanks for introducing me to Minsky's work Dr. Wray. For a non-economist struggling to understand why the GFC happened his work was like lifting a veil.

I was a bit annoyed by the broadcast in that it entertained the notion Minsky was a one-trick pony, spending his entire life on instability. Anyone who has read Ending Poverty knows he thought and worked on a great deal more. Overall it was very positive, though.

DismayedApril 4th, 2014 at 5:07 pm

Minsky's work lifted a veil for those of us who studied economics, too. Unfortunately, most economists are too wed to their nonsensical models to fully appreciate an accurate model of reality.

PecosBankerApril 5th, 2014 at 7:49 am

BBC radio show was insipid. Paints central bankers as good guys who were simply working with the tools they had available. Whereas, they are really out there doing the bidding of various elites to move all wealth into the hands of a tiny minority who will rule the world with an iron fist and either kill us off or make slaves of us all. Hopefully, their arrogance will cause them to overreach. I can say this because I'm just an idiot, wheras you professionals have to worry about stepping on the wrong toes. What they elites should do to avoid their own downfall is to find a way to quantify their arrogance that will allow them to set a threashold value to back off a little and let the prols have a drop of water on their tongue now and then.

L. Randall Wray L. Randall WrayApril 7th, 2014 at 12:32 pm

I step on central bank toes all the time, which you would know if you read my research.