FROM ORTHODOXY TO HETERODOXY: FINANCIAL CRISIS LITERATURE COMPARED

Authors

  • Ignacio MARTÍNEZ
  • Gabriel MURSA

DOI:

https://doi.org/10.1515/saeb-2016-0136

Keywords:

financial crisis, boom-bust cycles, Hyman Minsky, Austrian School, Knut Wiksell

Abstract

In this paper we’ll attempt to explain the connection between interventionism in financial markets, financial crises and economic downturns, as the main cause of the financial crisis mainstream models; As well as the connection between the theories of Austrian and Minsky’s economic cycle as branches of heterodox economic theory. In order to achieve this target, we’ll begin with a brief introduction of mainstream financial crises models in the orthodox economic literature, then we’ll examine the statements of the Austrian Business Cycle Theory and the Financial Instability Hypothesis, and evaluate whether a connection between the two. We conclude that Financial Instability Hypothesis can be studied as a particular case of the Austrian Business Cycle Theory.

JEL Codes - B53, E12, E14, E58, G01

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Published

2017-01-03

How to Cite

MARTÍNEZ, I., & MURSA, G. (2017). FROM ORTHODOXY TO HETERODOXY: FINANCIAL CRISIS LITERATURE COMPARED. Scientific Annals of Economics and Business, 63(SPECIAL ISSUE), 71–87. https://doi.org/10.1515/saeb-2016-0136