Date of Award
6-15-2024
Document Type
Masters Thesis
Degree Name
M.A. in Economics
Organizational Unit
College of Arts Humanities and Social Sciences, Economics
First Advisor
Yeo Hyub Yoon
Second Advisor
Jonathan Sciarcon
Third Advisor
Markus Schneider
Fourth Advisor
Robert Urquhart
Fifth Advisor
Daniel Ossa
Keywords
Financial stability, Global financial crisis, Long-wave cycle theory, Minsky cycles, Stress testing
Abstract
This thesis develops a theoretical framework that attempts to explain the dynamic interactions that lead to episodes of severe financial instability. Adapting Minsky’s Financial Instability Hypothesis to the specific characteristics of financial intermediaries and building on Ferri and Minsky’s ideas regarding the role of thwarting institutions, I propose that financial fragility is the result of a long-wave cycle in financial relations characterized by significant institutional and structural evolution within the U.S. financial system. This evolution results in a preponderance of financial activity undertaken outside the regulatory umbrella while margins-of-safety are eroded, newly innovated financial assets proliferate, and financial intermediaries become more interconnected. The framework generates predicted empirical patterns of variables associated with these characteristics that are compared to empirical evidence from the Global Financial Crisis (GFC). Policy implications of the theoretical construction and empirical exercise are discussed in the context of the reconstructed regulatory framework which has accompanied the GFC.
Copyright Date
6-2024
Copyright Statement / License for Reuse
All Rights Reserved.
Publication Statement
Copyright is held by the author. User is responsible for all copyright compliance.
Rights Holder
Shaun K. Brog
Provenance
Received from ProQuest
File Format
application/pdf
Language
English (eng)
Extent
111 pgs
File Size
977 KB
Recommended Citation
Brog, Shaun K., "Institutional and Structural Evolution of the U.S. Financial System 1945-2023: The Long-Wave Financial Cycle and the Role of Thwarting Mechanisms" (2024). Electronic Theses and Dissertations. 2427.
https://digitalcommons.du.edu/etd/2427