Martin Wolf
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More books by Martin Wolf…
“Depressions are indeed one of the states a capitalist economy can fall into. An economic theory that does not incorporate that possibility is as relevant as a theory of biology that excludes the risk of extinctions, a theory of the body that excludes the risk of heart attacks, or a theory of bridge-building that excludes the risk of collapse.”
― The Shifts and the Shocks: What we've learned – and have still to learn – from the financial crisis
― The Shifts and the Shocks: What we've learned – and have still to learn – from the financial crisis
“This book aims to learn from that mistake. One of its goals is to ask whether Minsky’s demand for a theory that generates the possibility of great depressions is reasonable and, if so, how economists should respond. I believe it is quite reasonable. Many mainstream economists react by arguing that crises are impossible to forecast: if they were not, they would either already have happened or been forestalled by rational agents. That is certainly a satisfying doctrine, since few mainstream economists foresaw the crisis, or even the possibility of one. For the dominant school of neoclassical economics, depressions are a result of some external (or, as economists say, ‘exogenous’) shock, not of forces generated within the system.”
― The Shifts and the Shocks: What we've learned – and have still to learn – from the financial crisis
― The Shifts and the Shocks: What we've learned – and have still to learn – from the financial crisis
“Governments had socialized the liabilities of the core institutions of the global financial system.”
― The Shifts and the Shocks: What We've Learned--and Have Still to Learn--from the Financial Crisis
― The Shifts and the Shocks: What We've Learned--and Have Still to Learn--from the Financial Crisis
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