Why Minsky Matters Quotes

“Minsky’s extension was to add the financial theory of investment, stressing that modern investment is expensive and must be financed—and it is the financing that generates structural fragility. During an upswing, profit-seeking firms and banks become more optimistic, taking on riskier financial structures. Firms commit larger portions of expected revenues to debt service. Lenders accept smaller down payments and lower quality collateral.”
― L. Randall Wray, Why Minsky Matters: An Introduction to the Work of a Maverick Economist

“a sovereign government can increase its spending—even if that results in a budget deficit—without increasing risk of insolvency and default. In contrast, if private spending leads the way, it will tend to outpace income of households and firms, meaning that private indebtedness will grow. That is risky and ultimately unsustainable.”
― L. Randall Wray, Why Minsky Matters: An Introduction to the Work of a Maverick Economist

“Minsky’s view, the central bank really cannot control the money supply. The problem is that attempts to constrain reserves only induce bank innovations that ultimately require lender of last resort interventions and even bailouts that validate riskier practices. Together”
― L. Randall Wray, Why Minsky Matters: An Introduction to the Work of a Maverick Economist

“As the chartalist, or modern money approach, explains, modern governments actually spend by crediting bank accounts.23 It really just amounts to a keystroke, pushing a key on a computer that generates an entry on someone’s balance sheet. Government can never run out of these keystrokes.”
― L. Randall Wray, Why Minsky Matters: An Introduction to the Work of a Maverick Economist

“Followers of the work of Minsky and Godley were thus amused by positive reactions to the Clinton-era budget surpluses and the predictions that all federal government debt would be eliminated over the coming decade and a half. It was”
― L. Randall Wray, Why Minsky Matters: An Introduction to the Work of a Maverick Economist