Download Financial Instability and the Decline (?) of Banking

Financial Instability and the Decline (?) of Banking:
Public Policy Implications
Hyman P. Minsky*
Working Paper No. 127
October 1994
*The Jerome Levy Economics Institute of Bard College
Definition
I.
Banking
supplies
plays
the means
capital
organizations
These
the trend
function
and
as part
at par --needs
significance
to
of
which
longer
Federal
be
financing,
but
evaluation
by portfolio
the
affect
rather
stability
the
evaluation
of
by
these
the
banking
extent
by
caeter:ls
it seems,
in
to
those
Reserve
bank
affecting
role
of uncertainty
When
by
viability
Central
financial
by
that
available
operations.
affect
uncertainty:
markets.
growth
of banks
the
availability
of the
the
always
policy
(of
defined)--to
liabilities
are
operations
the
economy
"control"
"declining"
of monetary
the
broadly
mechanism
The
managers
role
banks;
that
changing
by
the
Banks,
payments
efficacy
may
and
assure
for the
by
that
examine
reviewed.
and
into
continue.
(Central
the
resources
scores
it
economy:
decreasing
a
as banks
suggest
to be
channels
no
will
and
regulate,
money;
On both
to
chartered
organizations
supervise,
bank
are
capitalist
it channels
performed
developments
government
of
that
that
paribus,
and
of the economy.
being
are
in a modern
of payments
development
functions
roles
two
of the Problem
The
economy
cost
or
has
affecting
of
the
of enterprises
Bank
operations
market
agents,
2
market
reactions
operations. 1
will
The decrease
development
the
Federal
structure
of
that
financial
institutions
the
In general,
second
plane
decisions)
This
is
that
financial
rules
that
paper
institutions
and
the
of
the
the
and
contain
on
concentrates
and usages"
policy
economic
theory.
economic
policy
especially
significantly
of the day.
policy
economic
It behooves
to make
true
if
the
different
of
way.
takes
guide
(and
place
of
them.
on
the
The
administrative
operations
the
policy
existing
operations
and
banks
of
banking
in setting
financial
markets.
"legislating
second
plane.
II. Theoretical
Every
on
are
importance
involvement
banking
that
supervision
should
government
the
the
policy
and
of
The
in a serious
legislation
of
regulatory
relative
day-to-day
structure
and the
markets,
as our
and
if any, that
rules,
affects
constrain
of the
that
whether
on economic
capital
significance
unchanging.
is
of the
investment
even
to be changed
is that
the
to
like
regulation
discourse
the
in the
banks
as
of
that
more
decline
size
organizations
frozen
needs
and the
"authorities"
and
One
"planes."
two
major
facing,
structure
institutional
some
the
relative
are
chartered
institutions
to increase
firms
from
with
in financing
operate
remains
emerges
of banks
banks
rating
banks
of line
Commission
That
System.
bond
for
out
tends
Exchange
as commercial
is an issue
problem
economy
and
Reserve
chartered
be
in the weight
of the
Securities
often
"where
reflects
argument
anyone
who
the
theory
conventional
from"
of
maintained
a
analyzes
he is coming
maintained
from
Background
and
advocates
clear.
the
This
analyst
or orthodox
is
is
theory
3
comment
This
instability
financial
Theory
of Keynes.
Theory
Keynes
cycles
business
General
in The
General
aggregate
conditions,
financing
that
processes
among
of income
determine
the path
through
utility
about
economy
that
functions
Keynes
neutral.
In
over
the
Theory
the
theory
neutral.
institutions
circumstances
in
quite
money
prices
assets. 3
In
viewed
the
as
generate
a
the
time.
of
different
current
set
path
of
of
once
upon
money
into
and
interacting,
from the
112
me.
financial
and finance
are
in general
and
financial
economy
through
time.
special
result
of
the
the
the
rather
money
interdependent
economic
multi-market
because
money
determination
hypothesis,
pertinent
creation
the
but
wages,
.
is
which
not
is
.
entangled
the
of
money
the
".
path
ways
of
into
of escaping
instability
results
went
of an
behavior.
that
in monetary
outputs
the
is
changes
money
rigid
as
financial
The
the
of
that
developed,
is built,
affect
such
theory
to
functions,
and maximizing
which
Theory,
Keynes
non-neutrality
enters
a process
equilibrium
by production
variables",
In particular,
will
static
specified
the effort
as
hypothesis
of the
neo-classical
of the Quantity
instability
This
"real
described
General
confusions
is fully
of
proposition
The
the properties
leads
which
theory,
economic
the
from
radically
quite
differs
view
"neo-classical"
abstract
real
that
The
of an investment
theory of
for
investment
theory
of
Interactions
demand,
Keynesian
propositions
not
financial
holds
of
the
of
of the economy.
orthodox
of
and
and the distribution
This
One
foundations
investment
determine
time
out the
economies.
capitalist
demand,
interpretation
a
perspective
the
interpretation
hypothesis
This
set
from
written
is
price
the
of
of
capital
economy
processes
variables
interactions
the
is
that
through
are
most
4
often
but
tranquil,
the
interacting
as
incoherent
from
processes
interactions
between
commitments
markets.
These
a
generating
deep
depressions
and
systemic
deviations
orthodox
theory
optimums,
the
which
are
the
arise
determined
are
incomes
paid
for
were
fulfill
payment
in assets.
the
cash
flows
assets
commitments
into
simple
in
order
with
to
of gross
of
that
such
policies. 5
in
finance
which
business
Gross
capital
sufficient,
made
during
investment
validating
instruments,
liability
cycles
incomes,
demand:
sufficient,
financial
deep
and positions
economies.
for
the
commitments,
capital
case,
as
business
aggregate
the
as
and
or
prior
spending
prices
well
structures
investments
to
seriously
often
payment
the
lead
holds
flaws,
commitments
serious
processes
are
both
Whereas
investments
available
to
income
an
lead
market
between
skeletal
embodied
characteristic
hypothesis,
than
and
in
by apt economic
capitalist
to
capital
entered
in
more
the
fulfilling
structure
the
either
In
determines
flows
as determined
output.
these
of financing
be
financings.
of
interactions
endogenous
can
insufficient
by
they
processes
effect
and the
assets,
to
hypothesis
instability
in the process
due
are associated
from potential
can be contained
from
the
system.'
decentralized
full
of
of
simultaneously
is
inflations:
market
periods
flows
the essential
it
of
as well
outcome
of assets
instability
financial
result
cycles
the
depressions,
in capital
that
capitalist
However,
mainly
severe
that
payment
and incoherence
financial
flawed.
In
that
effect
conditions
holds
income,
reflect
of output
finds
of
and long
of
cumulative
natural
a
and a financial
turbulence
outcomes
theory
and the prices
economy,
system
Economic
flows
the
turbulent
as
interactions
capitalist
time
This
occur
financial
of
to
generates
behavior.
behavior
incoherent
time
as
which
positions
5
In
our
foreign
governments
debt-finance
too,
world,
complex
need
finance
and
some
of
to validate
some
households,
their
activities
debts
current
have
enterprises
inherited
demands
for
government
units,
and
outstanding
debts,
and
internationally.
from the past,
even
as they
with
new
as an interpretation
of
and
goods
They,
services
debts.6
III Debt
The
Keynes
financial
starts
The
with
General
great
the
Keynes
of Great
condition
the
for
familiar
economy
and
market
changes
addition,
as
practices
adjust
over
and
Economy
Irving
shortly
that
banking
Fisher's
after
culminated
system
Debt
in
Deflation
the
in
the
Theory
8
overindebtedness
This
and
enjoys
in
period
changes
assets
of good
are
times.
new
institutions,
new
are
one
aspect
way
periods
of
innovations,
evident
to new technologies
of the
of
form
extended
out
initial
an
capital
in
an extended
the
is
arises
positions
especially
is
during
States'
deflation.
changes,
instruments,
and access
with
investment
Institutional
United
argument,
a debt
as the
financing
the
7
Depressions.
way
financed
these
good
of
the
times.
days,
of communicating,
In
financial
computing,
to files.
Fisher
is now
of
Fisher's
written
of the American
of 1932-33
was
In
was
Theory
collapse
hypothesis
two observations:
contraction
winter
in
instability
Deflations
clear
did
not
that
explain
over
how
overindebtedness
an extended
period
of good
developed.
times,
It
during
6
which
the
use
wariness
of
evaluation
as
the
of
debt
use
the
of
the
margin
of
of
safety
proportions
outstanding
contracts
uncertainty
being
articulation
of
to
in
liability
to service
payments
the
and
objective
diminishes
flows
are
even
the
of
pledged
as
by
views
of the
the
closer
as
income
chances
even
diminishes,
Subjective
debts.
decrease
carried
increases
failure
cash
subjective
The
structures
expected
prior
gains,
attenuates.
of project
of
debt
well-advertised
debt
likelihood
ever-larger
payments
leads
to
these
fund
contracts
being
not
fulfilled.
Impact
of the Great
After
of 1929-33
weaknesses
in the
information
potential
Reserve
the
had
interpretation
current
the
investors
to be picked
of
behind
by
up and put
running
structure,
provided
to the organization
together,
the
to their
the
emphasized
all
and powers
great
the
depression
great
the
corporations
way
from
investors
and
of the Federal
System.
Federal
panic
of
Reserve
financial
unable
to stem the wave
1929-33
period,
Government's
some
needed:
crashes
a
interface
device
banking
Depression
and then,
in place
after
motive
and
had
its
founding
of banks
developed
the
than
in place
that
banking
the
and
Federal
to contain
financial
of a "permanent"
for
in the
of insolvency
other
a period
created
As the
with
two
was
impossible.
consensus
had to be put
The
System
One
1907.
future
Great
left
pieces
financial
that
The
window
the
when
1933,
contraction
Depression
phases:
first
of study
and debate,
structure.
came
was
Federal
a
make
was
the
of
the
system
was
discount
Reserve's
crises.
the
emergency
reform:
The second
of
over
retooling
financial
of
to
Reserve
and firms
solvency
legislation
aftermath
phase
era
of
the
provisions
the
setting
took
place
mainly
place
in
1935
and
a structure
depression
The
1936.
so that
could
a financial
not happen
of the
in
written
particular
either
banking,
economically
This
place.
by
monetary,
or
history
another
round
system:
to
provide
furnish
channels
to
leading
set
in
to a great
get
United
money
States
could
be
After
a
right.
had
a new
structure
was
reform
a safe
1930's
structure
and
subsequent
reflects
placed
for the
to
and financing
reform,
requirements
compatible
of the
politically,
of
of
of the
history
attempts
of
was
again.'
economic
terms
reform
collapse
IV. The Reforms
Much
of
object
and
upon
sound
financing
the
the
failure,
two
not
medium
of the
of
put
completely
banking
exchange,
capital
in
followed
and
monetary
failed,
and
development
to
of
the economy.
Compartmentalization
Two
be
said
principles,
to
reformed
the
and Transparency
have
governed
the private
government's
in place
compartmentalization
the
Compartmentalization
into
limited-domain
particular
other
that
have
of
referred
One
aspect
commercial
the
from
industry
special-purpose
market
financing
of particular
of
structure
financial
which
the
basic
systems
types
positions
of
investment
act.
that
and
set
is
or
in
particular
of assets
compartmentalization
to as Glass-Steagall
can
in place.
protected
in
financing,
or in the provision
units.
separation
commonly
institutions
of
The
largely
within
compartments,
types
industries,
means
mid-1930's
and financial
banking,
is still
transparency,
in the
structure.
in the mid-1930's
divided
legislation
monetary,
regulatory
and
banking,
In addition,
is
what
for
the
is
special
8
financing
agricultural
Finance
supervised
the
industries,
and
government
acted
that
determined
to offset
take
over
were
always
the
or guarantee
honored
were,
and
The
that
in
large
United
corporate
form
transparency
of
markets
in
"second
hand"
In addition,
bought
which
initial
securities
the markets
were
corporate
to
market-
rather
be
than
an
Federal
an
bank
implicit
up
as
to
deposits
The
Government
to
limits
set
legislation,
which
was
was
that
economy
of
created
Reserve.
capitalist
sold,
small
deposits
a recognition
in
which
dominates.
truthful
information,
and
was
of
activity
takes
place
and
to be publicly
financial
on
the
in
those
in
which
available.
instruments
either
manipulation,
the
The
business
or third
principle
that
reflects
underwriting
free
Federal
eligible
were
really
in which
the
so guaranteed.
that
management,
The transparency
a
a
from
liabilities.
initial
corporations
are
of
System
to
became
commitments,
not,
holds
principle
the
Reserve
access
agencies.
carried
organizing
of
a myriad
removed
and
assuring
from
transparency
is
other
for
was
debt
experience,
were
States
condition
financial
for
of the
recent
of
of
of their
deposits
doctrine
the
makers,
our
and
Federal
currency
funds
One principle
the
supply
set
par
insurance
bank,
backstop
government
new
at
The
investment
railroads,
doctrine
Reserve
a
available
by Congress.
not
bills
currency
Federal
ownership,
programs.
responsibilities
deposit
endorsement
the
insurers,
Deposit
various
financing
Furthermore,
credit.
an asset
real
home
electrification.
banks,
of legislation
The
reorganized.
Reserve
and
spate
for
a government
of
as the
place
rural
Corporation,
refinancing
same
in
and
resource-development
In the
rules
put
exports,
credit,
Reconstruction
was
were
arrangements
were
by
sold
market
parties.
is necessary
institution-based
for the
operation
financial
of
system.
9
Revelations
of scandals
losses
of investors
crash
value,
integrity
as the
Dow
that
meant
was
institutions
was
fell
1933
combined
to some
public's
revival
facilitated
of
with
in
confidence
in
the
wisdom
in
in banks
and
the
by Federal
the
15% of its pre
confidence
and
markets
The
low.
banking,
Jones
by
investment
of
participating
saving
in investment
government
deposit
insurance.
There
was
intervention
to guarantee
in
confidence
financial
and
accompany
what
of
reform
of
financial
Loan
of
information
about
government
like,
to
units
effect
transform
forth
by
of
the
that
potential
are
optimistic
borrowers
for
corporate
the
needs
to
operations
of
with
"universal
what
public
confidence
one
of the
without
for
markets
between
banks
finance
in
the
The
securities
most
successful
today's
it,
skilled
professionals,
often
and
of businesses,
The
financing.
he has never
the
the
that
economies
submitted
require
founding
market
not be feasible.
operations
reflects
the
era:
would
banks
be
required
and
governance.
well
Deal
privately
that
accurately
New
system
officers
evaluation
to the
the
for
of
management
second-hand
the
corporate
may
financing
standards
and
a division
in
Revival
information
from)
is
and
legislation
efforts
oriented
finance
markets
exchange
the
between
with
assets.
legislation
offering,
difference
markets
integrity
for
government
corporate
set
Commission
similar
equity
Deal
New
information
and economies
banking"
and
of
One
securities.
of
security
a
of other
integrity
governance,
flow
value
and
The
a public
the
and
the
of
debt
Exchange
and
reporting
(and
of
markets.
Securities
the
market-based
guaranty
some
possibility
no
seen
loan
views
into
a pro
officer
of
profit
realistic
officer
that
process,
the
confidential
households,
loan
forma
in
and
joke,
he did
which
expectations
expectations
not
seeks
put
which
10
to and endorsed
can be submitted
the
bank.
The
underwriting
The
role
remark
of
loan
about
are the designated
their
living
based
financing,
to
play
The
skeptics
similar
both
lacking
1930s
the
belief
was
banking
system
able
take
of
borrower
relations
and
with
identifies
loan
the
officers
analysts
but
the
are
the
assumed
continuing
often
lender
that
and
depositors
borrowers
financing
make
In market-
understand.
banker,
of
traded
who nevertheless
security
an
is
arrangements.
in
an
regulation,
of
the
normal
and
Federal
the
of
banks
the
was
not
of
of the
equity
that
bank,
crisis
resolution
of
of
bankrupt
solvency
infusion
into
crisis
Reserve
otherwise
The
Corporation
the
instability
in 1933.
an
federal
authority
result
deposit
and
savings
banks,
for
the
to contain
climaxed
after
by
were
the
bankrupt
basis.
creation
standards
unable
that
Finance
on a mark-to-market
and
was
involved
1933
diluted
of
position
system
commercial
problem
equity
banking
The
the
created
the
the
Reconstruction
that
was
As
Reserve
of
Reserve
to rest.
Federal
natural
financing:
put
was
the
unions
that
input
publicly
of
they
the
of
reorganization
Federal
crisis
and
in market-based
the
to
for
earlier
that
committees
with
cited
chain
risks
the
When
1907
role
of the economy,
to
a bank's
in general
formas
underwriting
to
characterize
similar
in the
by accepting
roles
commitment
a
pro
officers
combined
process,
plays
analysts,
securities. 10
security
by loan oversight
of
loan
the
of deposit
coverage
examination,
and
a
which
insurance
institutions
and
organizations,
Federal
Reserve
insurance
mechanism
assures
the
credit
System.
is the
of
for
setting
A
of
supervision,
insurer
that
the
11
insured
conforms
examination
The
member
banks
reserve
channel
of
through
creation
of
banks
district
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Changes
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projected
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try
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lenders
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legitimated
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as
to
were
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regulation,
12
supervision,
examination
and
of
member
banks
by
the
Federal
Reserve.
The
decade
Federal
of the century
basis
of a currency
the
needs
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Reserve
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Banks
i.e.,
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note
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introduced
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the
crisis
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The
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Banking
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of the United
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War
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system
War.
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GDP
of government
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fell,
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source
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World
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use
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debt
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The expectation
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National
creation
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to resume
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currency,
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expectation
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led to a shortage
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window
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of trade.11
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in the
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Currency.
meant
at the District
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first
crisis,
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Government
available
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economy
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financing
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upon
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Legislation
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facilitated
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Making
was
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and a banking
trade,
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supply
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of
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period
ratifying
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13
expectations
of
fiscal
federal
the
government
debt
and
for the
of
government
relative
Whether
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structure
for
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of open
apt
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System
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economy:
to
market
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very
Reserve
open
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and
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market
bank.
V. Today's
The
financial
systems
financial
systems
of
since
end
World
the
collapse
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of
System
banks
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Federal
with
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rule.12
eligible
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interacts
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Reserve
operates
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Today,
examination
commercial
faced.
structure
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1980,
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expectations
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for
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and
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Banks
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election
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money
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supervision,
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created
GNP
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a result
following
system
foreseeable
financial
As
1930’s.
the
of
prior
the
beginning
reason
for
this
the
of money
supply
activity
War
II
means
need
no
which
Furthermore,
bank
the
reserve
capitalisms
1936.
there
such
has
as had
and
the
not
been
often
that
reserves
a decline
longer
be
lowers
with
base
government
and
bank
the
half-century
a
traumatic
during
collapses
had
One
depression.
are
in
a result
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such
long-lasting
the
are
Over
Historically,
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accommodations.
portfolios
of
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debt.
or
1940.
change
government
today's
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business
1907
of financial
century
of
Capitalism
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reserves
of
debt
and
a decline
for
demand
available
deposits
upon
will
in
in
bank
for
be
14
if
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sustained
bank
lending
households
and
business
to
decreases.
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of
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This
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incomes. 13
policy
profits.
The
occurred
primarily
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small-government
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Stabilization
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These
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15
funds
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value
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to
make
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financing
expensive;
i.e.,
16
monetary
it
induces
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conservatism
will
A
crunch.
economic
a s lack
policy
by creating
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attained
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policy
posture
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overall
ratio
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out,
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GDP.15
VI. Policy
As my
1935
few
colleague
Ronnie
believed
that
One
completed.16
bank
argument
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was
resources
This
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made
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to
examination
under
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independent
FDIC.
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off
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Phillips
As
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reports,
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depositors
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of the
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able
FDIC
pointed
examination.
experience,
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at hazard
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deposits.
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experience
Reserve
bank
and
was
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savings
with
a solvency
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player
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crisis.
in paying
association
17
liabilities
The
at par.
major
placers
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insurance
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main
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and the Treasury.
Whereas
inducing
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and
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18
In
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Banks
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first,
say,
10%
risk
of private
value
would
rate
specialists
of deciding
tranches,
a market
are
reading"
loans
would
interest
floating-rate
as the
with
tranche
the
"hard
a potential
break
financing
These
function,
in the process
that
portion
absorb
all credits
was
be
running
on the basis
of their
accommodate
portion
tranche.
performing
which
can
are
technique
officer
obtain
funds
variable-income
also
basis
household
variable-income
loan
for bank
mutual
and
value
financing
of
standard
for
finances
that
debts.
the
free
the
trends
and
upon
both
This
paper
principal
are purchased
their
they
and
fund
that
which
a
based
are
assets
financing
the payments
value.
of
equities
mutual
information,
and
value
the
vendor's
information.
Banks,
business
nominal
debt
from
that
Current
becoming
values
for instruments
fixed
households
business
was that
instruments
debts.
funds
have
on
by
household
liabilities
available
a
the
system.
schemes
contingent
holding
and
was to be divorced
of
have
making
services
of the payments
provision
always
for
100% money
of the
the
indirect
used
costs
fees
and households
accomplished
the
of
so structured
high
of
could
expected
losses
that
return
due
be finessed
to
the
but
non-
by making
credits.
century
during
is about
the
1930's
to be ushered
discussion
in, an idea
of reform
can
21
once
is
again
that
it
banking
of
can have
and
these
too
We now
two
are
the
capital
as too much,
payments
that
is held
business
is
does
fund,
holders
in the
that
not
portfolio
the
loss
of
his
need
world,
managements
This
to a greater
spread
that
been
has
owners
is
by
the
of
the
debt.
of
100%
economy
funds,
of
by
and
a
government
for
the payment
of financing
way
manager
order
an economy
the
responsible
fund
economy.
set-up
a portfolio
in
to
of
protect
a mutual
the
A surrogate
for bank
high-expected-return
tranche
of principal.
by corporate
the wider
dual
and
and secure
that
mutual
mutual
capital
of
scheme
fund
capital
in the
to be developed.
In a capitalist
is true
monetary
government
as
upon
the
the
aware
the
position-taker,
a high-risk,
will
such
authority
of
hazard
against
form
the
money
of a safe
development
is based
weakness
The
system.
by
us
to realize
capital
the
100%
development
as well
liabilities
that
that
it makes
contingent-valued
bonds
functions
the provision
in a position
mechanism
of the
functions
little,
financing
money:
the
has to perform:
payments,
separating
One virtue
table.
separates
system
means
By
be on the
people's
and portfolio
extent
One
realized.
public
mostly
way
money
managers
now than
albeit
of wealth,
broad
other
of
is put
of various
ever
before,
in small
protecting
information
widely
at
risk
kinds.
because
of
accumulations,
today's
asset
disseminated:
by
transparency.
Compartmentalization
Like
and
every
application
transparency
institutions
and Transparency
need
and
to
usages.
institutions
by function,
largely
eroded.
been
of
be
for the
21st
compartmentalization
principles,
adjusted
The
so prominent
As we prepare
Century
for
the
realities
compartmentalization
in the
for the
1935
21st
of
structure,
century
of
has
we have
22
to
adjust
the
still-valid
transparency
to
understanding
of how our economy
The
and pension
holding
company
funds
we
expect
banking
erased
to be
under
will
be
under
functional
and
century
and
that
now
same
to
of market
the
finance
our
allow
commercial
segmentation
of
of
both
banks
umbrella,
commercial
company
instruments
Furthermore,
companies.
allows
loans,
of mutual
operations
corporate
a holding
automobile
in the weight
holders
changed
sales
opened
21st
increase
has
the
the
mortgages
the
format
to co-exist
the
home
loans,
and
compartmentalization
functions.
proximate
and consumer
mutual
can
as the
primary
banks
of
reflected
funds
reflecting
the
that
of
technology
securitization
an adjustment
savings
the
of
concepts
and
and
format,
commercial
and
which
investment
has virtually
and
investment
banking.
Legislation
of
the
and administrative
barriers
implemented.
geographical
One
the
banking
rich
This
paves
the
way
in
and
often
has
Italy,
made
(in
number
of
the
eliminate
banking
are
most
now
being
elimination
for
the
the
British
banking
never
of
of
capital-to-total
of the
so that
can be allocated
assets
rule
group.
rule means
dollars
that
in capital.
exist
in
rule
of
as
banker
as a
provides
10%
or
for
15%
earnings,
of
and
to any one credit.
determines
For
such
than
retained
of
even
structure,
no more
over
systems,
prudent
regulatory
capital,
a banking
8 million
branch
The
economy
concentration
organizations,
arose.
credits
profits)
ever-greater
of national
lO%-to-15%-of-capita1
habitat
have
been
part
of
stagnation
principle
undistributed
This
the
fringe
of
equity
would
branch
a small
distribution
size
wide
that
segmentation.
into
Germany
the
nation
century
mix
thumb,
to
element
past
decisions
example,
the
an
natural
eight-percent
a 100 million-dollar
The maximum
loan
credit
bank
line
23
of such
an institution
the American
as
its
the
maximum
same
dollar
credit
line
The
an
and
a
and
of
smaller
Every
case
therefore
the
banks,
lines
will
each
take
large
borrowers
will
credit
small
to
that
series
in order
that
segments
to
million
have
a
maximum
banking
a
and
increase
the
that
small
with
can
maximum
likely
of
credit
to
of
be
natural
number
of credit
a most
will
regional,
to higher
conditions
banking
businesses
are to receive
proceeds.
The idea
organizations
support
to be
12
large
supply
of
outcome
of
place.
of rules
consolidation
the
80 million-
credit
of supply
to
seems
borrowers,
if small
special
relative
By
to
will
of banks
to fail,
conditions
8
state,
of
progress
is too big
the
improve
is now taking
A
The
an
branch
amalgamation
line
or less
dollars.
into
A movement
one of which
so
of
In
business.
would
nationwide
maximum
place.
of
million
banks
$l,OOO,OOO
have
line
bank
to
$1,200,000.
smaller
will
credit
gates
to
with
for
bank
to 1,200
to any one customer.
habitats
a bank
billion-dollar
of the
amalgamation
capital,
the
100
opening
banks.
what
is
maximum
of 800 million
national
given
line
a
$800,000
is, any bank
a 1 billion-dollar
capital
and
be from
as it now
credit
rule,
dollars,
see
scene
would
for
by
bank
adequate
of special
community
size
financing
rules
banks
seems
as well
needs
to
as
as
be
explored."
VII.
The
time
of
structure
changes
mean
now
that
economy
the
come
banking
underway
much
of
has
open
and
past
we now have
decades,
a
Proposal
national
financial
in technology,
of what
the
to
A Modest
inquiry
system.
computing,
and
may be obsolete.
combined
with
The
into
the
radical
communication
The
the
sluggish
apparent
24
of
reluctance
can mean
chance,
with
the needs
In
the
financial
that
financing
I
National
to
were
employment
are not
that
what
be
in
the
result
enough
that
structures
Monetary
full
a
consistent
democracy.
suggest
should
give
structures
changes
and determine
arrangements
agenda.
our financing
serious
banking
board
century
Reserve
of a progressive
past,
and
the drawing
policy
Federal
inquiries.
public
20th
the
it
is
is time
the monetary,
the
Commission
21st
should
of
amiss
to
go
serious
in
our
back
to
financial,
and
A
late
century.
be on the public
25
ENDNOTES
rates and financial
The strong
reaction
of interests
1.
Reserve
actions
may
markets
after the modest early-1994
Federal
well reflect
an increase
in uncertainty
by agents of how these
now
more-complex
the
will
work
their
through
actions
way
For an argument
about how monetary
policy
financial
markets.
operates by affecting
uncertainty
see Minsky, Hyman I?., "The New
(179-191)
in Minsky,
Hyman P. (1982)
Uses of Monetary
Powers"
"Can It Happen Again?", Armonk, N-Y.: M.E. Sharpe.
Introduction
to the French
edition
of Keynes,
2.
Maynard,
(1973) The General
Theory
of Employment
Interest
VII of Collected
Works
of
Money,
as reprinted
in Volume
Macmillan.
Maynard Keynes, London and Basington:
John
and
John
This two-price-level
interpretation
of Keynes's
non3.
neutrality
of money is stated in Minsky,
Hyman P. (1975), John
Columbia
University
Press, as well as in (1982)
Maynard
Keynes,
One way
Press.
Stabilizing
an Unstable Economy, Yale University
of making the idea of the two price levels clear is to note that
a capitalist
economy has both a "CPI" and a "Dow Jones".
long
duration,
but
fairly
may
be
of
Turbulence
4.
In the turbulent
incoherence
is almost always of short duration.
dominated
no more than
great contraction
of 1929-33, incoherence
the last 10 weeks before the inauguration
of Franklin
Roosevelt.
Decisive
action by the government
over the first hundred days of
of reforms
to come,
combined
with promises
Roosevelt's
term,
ended the incoherence.
The perspective
on our economy
to which the financial
5.
leads has much
in common
interpretation
of Keynes
instability
with the stress upon the evolutionary
properties
of capitalist
such
as
enlightened
the
work
of economists,
that
economies
Schumpeter
and the American
institutionalists,
who were prominent
in the first half of this century.
In the
In the core case, profits
equals
investment.
6.
plus the
world as it is, gross capital income equals investment
government
deficit minus the international
deficit of trade, with
26
corrections
for savings
out
financed by capital income.
of
labor
income
and
consumption
Keynes
visited
the University
of Chicago
in 1931 to
7.
lectures on Unemployment
as
participate
in the Harris Foundation
While in Chicago he noted that a preference
for
a World Problem.
and persons.
It
liquidity
was rampant among banks, businesses,
seems that Keynes
came to Chicago
to sell the analysis
of his
quantity-theoretic
Treatise
on Money, and left Chicago
with the
General
The
revolutionary
germ
of his
liquidity
preference
Theory.
Fisher's
8.
Econometrica.
article
appeared
in the
first
(1993) volume
of
One aspect of the process of reform was the assembly,
in
9.
young
the summer of 1934, by Jacob Viner of a gaggle of bright
economists
in the Treasury Department:
they were labeled Viner's
Their charge was to design
a banking
and financial
Freshmen.
One of these young economists
was Laughlin
system from scratch.
Both of them were friendly
another
was Albert
Hart.
Currie;
a doctrine
usually
associated
with
Henry
toward
100% money,
See Phillips,
Ronnie
J.
Simons
of the University
of Chicago.
The Chicago Plan and New Deal Banking Reform,
(1994 forthcoming),
Armonk, N.Y.: M.E. Sharpe.
lie,"
is a
"Entrepreneurs
law,
William
Janeway's
10.
about the determination
of whether
a project
parallel
statement
of the institution
of "security
The importance
is bankable.
for the
functioning
of a transparent
market
based
analysis"
financial
system
is one reason
why it is easier
for a newly
capitalist
economy to replicate a universal banking system than a
market based financial
system.
act replaced
a currency
The original
Federal
Reserve
debt
with
one
that
monetized
private
that monetized
government
The
period
of
the
National
Banking
Act
(1863
debts
(and gold).
The
William
characterized
by falling
prices.
was
to 1913)
"Cross
of Gold"
speech
was a response
to the
Jennings
Bryan
chronic deflation
of the post- Civil War era.
11.
If the trend decline in the ratio of government
debt to
12.
gross domestic
product
of 1946-1980
had continued
through
1993,
we would now be concerned
about the shortage
of government
debt
and we would be
system,
to satisfy
the needs of the financial
27
debating
what the structure
should be of a banking and financial
system in which the currency
and the reserve base for deposits
private
reflect
would
Reserve
Federal
the
furnished
by
obligations
that the Federal Reserve obtains either from an open
market or through the discount window.
For the concept of a contained
depression
see Levy, S
13.
Outlook for the 1990's: The Contained
and David Levy (1991),
Jay,
Jerome Levy Economics
Institute.
Depression,
For an explication
of the relations between the composition
and David Levy
of aggregate
demand and profits
see Levy, S Jay,
(1983) Profits and the Future of the American
Economy,
New York:
Stabilizing
an
Hyman
P.
and Minsky,
and Row,
(1986),
Harper
Press.
Unstable Economy, Yale University
Recall
that over 1929-33 the price
level of current
14.
output and the wage level of employed workers fell by about l/3;
the Dow Jones, the second price level, fell by some 85%.
Using crunches
to contain demand is a form of policy
15.
and
bankers
succeed
as businessmen
Crunches
brinkmanship.
The danger
that the
believe
that their survival
is at stake.
central
bank will carry the crunch too far and set off a debt
deflation
is always present.
Work:
18.
"New Deal's
Unfinished
Ronnie
J.
Phillips,
16.
(1994),
The American
Banker,
April
Merging
the bank regulators",
In the light of the French and Italian experience
with
17.
investment
banks,
it is difficult
to recommend
a
government
government
investment
bank except for the possibility
that in the
of this
bank
will
tend
to be
the
activities
United
States
transparent.
Some of the main references
for 100% money are:
18.
Banking
for
Plan'
"'The
Chicago
Albert
Hart,
(1935),
and Statistics
2: 104-116.
Reform," Review of Economics
Irving
(1945), 100% Money, 3rd Edition,
New Haven:
Fisher,
The City Printing Company
(First Edition 1935).
and Currency
Reform",
Simons, Henry, et al (1933) "Banking
Research
in the
Manuscript
Reprinted
in Warren
Samuels,
ed., History of Economic
Thought and Methodology,
Archival
Supplement,
Conn.: Jai Press, Forthcoming.
Volume 4, Greenwich,
28
reference
to Henry Simons is Economic Policy
a Free Society, Chicago: the University
of Chicago Press.
The general
19.
Phillips,
Banking:"
Institute.
Minsky,
and
L.
Public
for
B Papadimitriou,
Ronnie
Hyman
P., Dimitri
Randall
Wray
(1993)
"Community
Development
Policy Brief no.3, The Jerome Levy Economics
WORKING
PAPER SERIES
No. 1
Macroeconomic
No. 2
The Firm and Its Profits...NINA
No. 3
Competing Micro Economic Theories of Industrial
MARK GLICK AND EDUARDO M. OCHOA
No. 4
Housing Quality Differentials
No. 5
The Finance Constraint
No. 6
A Structural
No. 7
Why is the Rate of Profit Still Falling?...THOMAS
No. 8
The Effects of Alternative Sharing Arrangements on Employment:
Preliminary Evidence from Britain...JEFFREY
PLISKIN AND DEREK C. JONES
No. 9
Consumer
No. IO
Profitability:
Approach
Theory and Evidence...THOMAS
R. MICHL
November
SHAPIRO
March 1988
Profits: An Empirical Approach
in Urban Areas...DIMITRIOS
A. GIANNIAS
Theory of Money: A Progress Report...MEIR
to Hedonic Equilibrium
1987
Models...DIMITRIOS
March 1988
July 1988
KOHN
August 1988
A. GIANNIAS
R. MICHL
August 1988
September
1988
September
1988
October
1988
Long-Term Trends in Profitability: The Recovery of World War II...
GERARD DUMENIL. MARK GLICK AND DOMINQUE LEVY
October
1988
No. 11
Ranking Urban Areas: A Hedonic Equilibrium
DIMITRIOS A. GIANNIAS
October
1988
No. 12
The Real Wage and the Marginal
November
1988
No. 13
The Effects of Worker Participation, Employee Ownership and Profit Sharing on
Economic Performance: A Partial Review...DEREK C. JONES AND JEFFREY PLISKIN
November
1988
No. 14
Classical and Neoclassical Elements in Industrial Organization...
MARK GLICK AND EDUARDO M. OCHOA
December
1988
No. 15
The Financially Fragile Firm: Is There a Case for It in the 1920’s?...
D.L. ISENBERG
January
1989
No. 16
Unionization and Labour Regimes: A Comparison Between Canada and the U.S.
Since 1945...DAVID KETTLER, JAMES STRUTHERS AND CHRISTOPHER HUXLEY
January
1989
No. 17
Social Progress after the Age of Progressivism: The End of Trade Unionism
the West...DAVID KETTLER AND VOLKER MEJA
February
1989
No. 18
Profitability and the Time-Varying Liquidity Premium in the Term Structure of
Interest Rates...TRACY MOTT AND DAVID ZEN
March 1989
No. 19
A Dynamic Approach
March 1989
No. 20
Profits, Cycles and Chaos...MARC
No. 21
The Structure of Class Conflict in a Kaleckian-Keynesian
No. 22
Debt and Macro Stability...MARC
Benefit from Air Quality Improvements...DIMITRlOS
Approach
A. GIANNIAS
to Quality of Life...
Product of Labor...TRACY
MOTT
to the Theory of Effective Demand...ANWAR
in
SHAIKH
JARSULIC
JARSULIC
April 1989
Model...TRACY
MOTT
April 1989
May 1989
WORKING PAPER SERIES
-continued-
No. 23
Viability
and Equilibrium:
ISLM Revisited...JEAN
No. 24
Financial Instability: A Recession
DORENE ISENBERG
No. 25
Kaleckianism
No. 26
Marx’s Value, Exchange
JEAN CARTELIER
No. 27
Money and Equilibrium: Two Alternative
Activities...JEAN
CARTELlER
No. 28
The Covariance Transformation
Fixed Effects Model...JEFFREY
No. 29
Unionization and the Incidence of Performance-Based
DEREK C. JONES AND JEFFREY PLISKIN
Compensation
No. 30
Growth Cycles in a Discrete, Nonlinear
JARSULIC
No. 31
The Changing
No. 32
Simulation
CARTELIER
May 1989
on the U.S. Corporate
Vs. “New” Keynesianism...TRACY
Structure...
MOTT
June 1989
and Surplus Value Theory: A Suggested
Modes of Coordination
and the Instrumental
PLISKIN
Variables
Model...MARC
Role of Debt in Bankruptcy...DORENE
June 1989
Interpretation..
of Economic
Estimator of the
in Canada...
June 1989
June 1989
July 1989
August 1989
August 1989
September
1989
The Effects of Mergers on Prices, Costs, and Capacity Utilization in the
U.S. Air Transportation
Industry, 1970-84...FRANK
R. LICHTENBERG AND MOSHE KIM
November
1989
No. 33
What Remains of the Growth Controversy?...NANCY
December
1989
No. 34
The Determinants of U.S. Foreign Production:
Comparative Advantage...THOMAS
KARIER
January
1990
No. 35
Industrial De-Diversification
FRANK R. LICHTENBERG
January
1990
No. 36
The Microeconomics
No. 37
What Happened
No. 38
The Mathematics
No. 39
Poverty and Household
No. 40
A Kernel Regression
No. 41
Generalized Entropy Measures of Long-Run Inequality
Male Headed Households...SOURUSHE
ZANDVAKILI
No. 42
Poverty and Choice of Marital Status: A Self-Selection
No. 43
International Comparison of Household Inequalities:
with Decompositions...SOURUSHE
ZANDVAKILI
No. 44
Accounting for the Decline in Private Sector Unionization:
Elections, Structural Change and Restructuring...THOMAS
to the Corporate
J. WULWICK
Unions, Monopoly
and Its Consequences
of Monopoly
ISENBERG
for Productivity...
Power...THOMAS
Composition...JOAN
of Phillips’ Data...NANCY
April 1990
KARIER
Profit Tax?...THOMAS
of Economic Growth...NANCY
Power, and
May 1990
KARIER
July 1990
J. WULWICK
November
1990
November
1990
and Stability Among
December
1990
Model...JOAN
December
1990
December
1990
February
1991
R. RODGERS
J. WULWICK and Y.P. MACK
R. RODGERS
Based on Micro Data
Representation
KARIER
WORKING PAPER SERIES
-continued-
No. 45
Female-Headed
Families: Why Are They So Poor?...JOAN
No. 46
Redistribution
No. 47
Financial Disturbances
RICHARD SYLLA
No. 48
The Economic Significance of Equity Capital: Lessons from Venture
an Economist-Practitioner...WILLlAM
H. JANEWAY
No. 49
The Role of Banks Where Service Replication
RICHARD ASPINWALL
No. 50
How Useful Are Comparisons
ALBERT GAILORD HART
No. 51
Financial Crises: Systemic
No. 52
Debt, Price Flexibility
No. 53
A Critical Analysis of Empirical Studies of Transfers
No. 54
Why the Ex-Communist Countries
Economy...KENNETH
KOFORD
No. 55
The Measurement of Chronic and Transitory Poverty; with Application
United States...JOAN R. RODGERS AND JOHN L. RODGERS
No. 56
W(h)ither the Middle Class? A Dynamic View...GREG
AND WILLARD RODGERS
No. 57
Why Were Poverty
No. 58
Social Security Annuities
EDWARD N. WOLFF
No. 59
The Health, Earnings Capacity, and Poverty of Single-Mother
BARBARA L. WOLFE AND STEVEN HILL
No. 60
Who Are the Truly Poor? Patterns of Official and Net Earnings Capacity
1973_1988...ROBERT
HAVEMAN AND LARRY BURON
No. 61
Changes in Earnings Differentials in the 1980s: Concordance, Convergence,
and Consequences...MC
KINLEY L. BLACKBURN, DAVID E. BLOOM AND
RICHARD B. FREEMAN
No. 62
The Changing Contributions
Income, 1968_1988...MARIA
PETER GOTTSCHALK
No. 63
Wealth Accumulation of the Elderly in Extended Families in Japan and the
Distribution of Wealth Within Japanese Cohorts by Household Composition:
Analysis of the Literature...DAVID
W. CAMPBELL
Through Taxation:
An International
and Depressions:
R. RODGERS
March 1991
Comparison...SOlJRlJSHE
The View from Economic
ZANDVAKILI
History...
April 1991
Investing
Has Eroded Institutional
by
Franchises...
of Present Debt Problems With the 193Os?...
or Idiosyncratic...HYMAN
and Aggregate
Stability...JOHN
FAZZARI
W. CAMPBELL
Should Take the “Middle Way” to the Market
and Transfers:
Distributional
April 1991
April 1991
CASKEY AND STEVEN
April 1991
May 1991
June 1991
to the
June 1991
J. DUNCAN, TIMOTHY
Rates So High in the 1980s?...REBECCA
April 1991
April 1991
P. MINSKY
in Japan...DAVID
April 1991
SMEEDING,
M. BLANK
July 1991
July 1991
and Tax Implications...
July 1991
Families...
July 1991
Poverty,
of Men and Women to the Level and Distribution
CANCIAN, SHELDON DANZIGER AND
Causes,
of Family
July 1991
July 1991
July 1991
September
A Critical
1991
WORKING PAPER SERIES
-continued-
No. 64
Market Processes
and Thwarting
Systems...PlERO
No. 65
A Package of Policies to Permanently
KENNETH KOFORD
No. 66
The Transition
FERRI AND HYMAN P. MINSKY
November
1991
November
1991
P. MINSKY
November
1991
No. 67
Employment Restructuring and the Labor Market Status of Young Black Men
in the 1980s...DAVID R. HOWELL
December
1991
No. 68
Transfer
January
1992
No. 69
Reconstituting the United States’ Financial
Issues...HYMAN
P. MINSKY
January
1992
No. 70
The Distributional Implications
SOURUSHE ZANDVAKILI
January
1992
No. 71
Macroeconomic
Market Incentive Plans: History and Theoretical
KENNETH J. KOFORD and JEFFREY B. MILLER
January
1992
No. 72
The Capital Development
HYMAN P. MINSKY
January
1992
No. 73
Money,
No. 74
The Financial
No. 75
The Role of Unemployment
No. 76
The ‘Chicago
No. 77
Credit Markets and Narrow Banking...RONNIE
No. 78
The Predication Semantics Model: The Role of Predicate Class in Text Comprehension
and Recall...ALTHEA A. TURNER, PAUL B. ANDREASSEN, BRUCE K. BRITTON,
DEBORAH McCUTCHEN
No. 79
The Investment Decision of the Post Keynesian Firm: A Suggested Microfoundation
Minsky’s Investment Instability Thesis...JAMES R. CROTTY and JONATHAN A.
GOLDSTEIN
No. 80
Growth and Structural
No. 81
The Impact of Profitability, Financial Fragility and Competitive Regime Shifts on
Investment Demand: Empirical Evidence...JAMES
R. CROTTY and JONATHAN A.
GOLDSTEIN
No. 82
Job Quality and Labor Market Segmentation
on the Effects of Employment Restructuring
GITTLEMAN and DAVID R. HOWELL
No. 83
Community Development Banks...HYMAN
P. MINSKY, DIMITRI B. PAPADIMITRIOU,
RONNIE J. PHILLIPS and L. RANDALL WRAY
to a Market Economy:
Increase Output Without Inflation...
Financial
Options...HYMAN
and Life Cycle Wealth in Japan, 1974-1984...DAVID
Instability
Structure: Some Fundamental
of the Tax Changes
of the Economy
Growth, Distribution
W. CAMPBELL
in the 198O’s...
Rationale...
and The Structure of Financial
Institutions...
and Prices in a Simple Sraffian Economy...MILIND
Hypothesis...HYMAN
in Triggering
May 1992
Internal Labor Migration...GEORGE
in China-US
May 1992
P. MINSKY
Plan’ and New Deal Banking Reform...RONNIE
Change
RAO
MCCARTHY
June 1992
J. PHILLIPS
J. PHILLIPS
Trade...HONG
June 1992
July 1992
WANG
in the 1980s: A New Perspective
by Race and Gender...MAURY
B.
for
August 1992
September
1992
September
1992
September
1992
March 1993
December
1992
WORKING PAPER SERIES
-continued-
No. 84
Migration of Talent:
MILIND RAO
Foreign Students and Graduate
No. 85
The Relationship
No. 86
The Origins of Money and the Development
...L. RANDALL WRAY
No. 87
The Psychology
No. 88
The Limits of Prudential Supervision: Economic
and Competence...BERNARD
SHULL
No. 89
Profits for Economists...THOMAS
No. 90
Narrow Banks: An Alternative
No. 91
A Comparison of Proposals to Restructure
R. ALTON GILBERT
No. 92
The Current State of Banking Reform...GEORGE
No. 93
Finance and Stability:
No. 94
Productivity, Private and Public Capital, and Real Wage in the United States 1948-1990...
SHARON J. ERENBURG
May 1993
No. 95
The Community Reinvestment
Development Banks...DIMITRI
L. RANDALL WRAY
May 1993
No. 96
Mortgage Default Among Rural, Low Income Borrowers...ROBERTO
GEORGE W. MC CARTHY. MICHAEL A. STEGMAN
No. 97
Is Health Insurance
No. 98
Investment
No. 99
Government Deficits, Liquidity
...L. RANDALL WRAY
No. 100
Avoiding a Future of Unemployment and Low Wages: What Opportunities
to Young Unskilled Workers?...ROBERT
M. HUTCHENS
No. 101
Technological Change and the Demand for Skills in the 1980s: Does Skill
Mismatch Explain the Growth of Low Earnings?...DAVID
R. HOWELL
No. 102
Credibility of the lnterwar Gold Standard, Uncertainty,
Great Depression...J. PETER FERDERER
No. 103
Business Tax Incentives
No. 104
The Anatomy of Changing
of Determinants...ROBERT
Between
Economics
Education
Public and Private Investment...SHARON
of the Modern Financial
of Risk: A Brief Primer...PAUL
in the US..
J. ERENBURG
System
ANDREASSEN
Problems,
February
1993
March 1993
Institutional
Failure
March 1993
April 1993
to Banking Reform...KENNETH
SPONG
the US Financial System...
May 1993
P. MINSKY
May 1993
Act, Lending Discrimination, and the Role of Community
B. PAPADIMITRIOU, RONNIE J. PHILLIPS, and
Crippling the Labor Market?...DOUGLAS
and U.S. Fiscal Policy in the 1990s...STEVEN
and Investment...THOMAS
G. QUERCIA,
HOLTZ-EAKIN
FAZZARI
and Schumpeterian
April 1993
May 1993
G. KAUFMAN
The Limits of Capitalism...HYMAN
Preference,
1993
March 1993
KARIER
Approach
February
Innovation
Are Open
and the
KARIER
Male Earnings Inequality: An Empirical Exploration
H. HAVEMAN and LAWRENCE BURON
June 1993
August 1993
October
1993
October
1993
October
1993
November
1993
January
1994
February
1994
February
1994
WORKING PAPER SERIES
-continued-
No. 105
The Collapse of Low-Skill Male Earnings in the 1980s: Skill Mismatch or Shifting
Wage Norms?...DAVlD
R. HOWELL
March 1994
No. 106
The Role of Consistent Implementation of Policy: An Assessment of the Section 502
Low-Income Homeownership
Program...GEORGE
MC CARTHY, JR., ROBERTO QUERCIA
and GABOR BOGNAR
March 1994
No. 107
Economic inactivity of Young Adults: An Intergenerational
and BARBARA WOLFE
March 1994
No. 108
Community-Based
PAPADIMITRIOU,
No. 109
The Incidence of the Corporate
ANTHONY J. LARAMIE
Profits Tax Revisited:
No. 110
Banking Industry Consolidation:
GARY WHALEN
Efficiency Issues...ROBERT
No. 111
Banking Industry Consolidation:
DANIEL E. NOLLE
Past Changes and Implications
No. 112
Business Strategies: Bank Commercial
DONALD G. SIMONSON
No. 113
Lines of Credit and Relationship
and GREGORY F. UDELL
No. 114
Banking in Transition...GEORGE
No. 115
The Economic Consequences of Weintraub’s Consumption
ANTHONY J. LARAMIE, JAN TOPOROWSKI
No. 116
The Regulation and Supervision
RONNIE J. PHILLIPS
No. 117
Chief Executive Compensation
Micro Data...TAKAO KATO
No. 118
The Rhetoric of Policy Relevance
No. 119
Liquidity, Uncertainty, and the Declining Predictive Power of the Paper-Bill
J. PETER FERDERER, STEPHEN C. VOGT, RAVI CHAHIL
No. 120
The Productivity Convergence Debate: A Theoretical
...BRUCE ELMSLIE and WILLIAM MILBERG
No. 121
The Timing of Promotion to Top Management in the U.S. and Japan: A Duration
Analysis...TAKAO
KATO and LARRY W. TAYLOR
No. 122
Recent Trends in U.S. Male Work and Wage Patterns: An Overview...LAWRENCE
ROBERT HAVEMAN and OWEN O’DONNELL
Analysis...ROBERT
HAVEMAN
Factoring Companies and Small Business Lending...DIMITRI
RONNIE J. PHILLIPS and L. RANDALL WRAY
A Post Keynesian
B.
April 1994
Approach...
April 1994
DE YOUNG and
April 1994
for the Future...
Lending vs. Finance Company
April 1994
April 1994
Lending...
Lending in Small Firm Finance...ALLEN
N. BERGER
April 1994
E. FRENCH
Coefficient...DOUGLAS
of Bank Holding Companies:
and Corporate
April 1994
An Historical
Perspective...
Groups in Japan: New Evidence
in International
Economics...WILLIAM
and Methodological
MAIR,
from
May 1994
May 1994
May 1994
June 1994
MILBERG
June 1994
Spread...
Reconsideration
June 1994
July 1994
BURON,
August 1994
WORKING PAPER SERIES
-continued-
No. 123
The Utilisation of U.S. Male Labor, 1975-l 992: Estimates of Foregone
LAWRENCE BURON. ROBERT HAVEMAN and OWEN O’DONNELL
No. 124
Flying Blind: The Federal Reserve’s Experiment with Unobservables...
DIMITRI B. PAPADIMITRIOU and L. RANDALL WRAY
September
1994
No. 125
Profit Sharing and Gainsharing: A Review of Theory, Incidence
DEREK C. JONES, TAKAO KATO and JEFFREY PLISKIN
September
1994
No. 126
Financial Institutions, Economic Policy and the Dynamic Behavior of the Economy...
DOMENICO DELLI GATTI, MAURO GALLEGATI and HYMAN P. MINSKY
October
1994
No. 127
Financial Instability and the Decline (?) of Banking:
HYMAN P. MINSKY
October
1994
Work Hours...
and Effects...
Public Policy Implications...
August 1994