The financial fragility hypothesis and the debt crisis in Italy in the 2010s

Ivan, V Rozmainsky; Rodionova, Tatiana

doi:10.18522/2073-6606-2021-19-1-6-16

Cited by 6 publications

(3 citation statements)

References 15 publications

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“…At the same time, this is found to be especially applicable to managers of firms who seek to raise the market value of the financial assets of these firms as high as possible in exchange for some "bonuses" from shareholders. In this regard, financialization leads to investor myopia (Rozmainsky, 2014) when the future is cut off from consideration or discounted at an increasing discount rate, the consequence of which is that economic entities are increasingly refusing to invest in risky or innovative projects with a long payback period.…”

Section: Theoretical Aspects 21 Financialization and Its Aftermathmentioning

confidence: 99%

An empirical analysis of the influence of financialization on the innovative activity of the firms’ managers in Italy

Tarverdyan

Rozmainsky

2023

Terra Econ.

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This paper contributes to the discussion about the impact of financialization on the innovative activity of firms. The initial hypothesis was whether financialization has negative impact on the innovative activity of a company as a consequence of investment short-termism of managers who are not motivated to invest in risky innovative initiatives with a long payback period. Assumptions are made through analyzing the relationship between financial indicators (financial expenses and incomes) and investments in research and development on the sample of Italian publicly listed non-financial corporations. The article tests whether financialization leads to short-termism of company managers forcing them not to invest in risky innovative initiatives with a long payback period. Econometric analysis reveals that financial income of Italian non-financial companies was found to be positively associated with their R&D expenses. This finding may support the economic theory of the mainstream literature, which argues for the beneficial effects of financialization on the economic growth and is inconsistent with many empirical results received by the Post Keynesian authors. The possible reason for it is that the motivation of the Italian managers may be different from the Anglo-Saxon managers' one and not characterized by the shareholder value orientation and short-termism.

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Section: Theoretical Aspects 21 Financialization and Its Aftermathmentioning

confidence: 99%

An empirical analysis of the influence of financialization on the innovative activity of the firms’ managers in Italy

Tarverdyan

Rozmainsky

2023

Terra Econ.

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“…Посткейнсианство известно в настоящее время благодаря гипотезе финансовой нестабильности (хрупкости) Х.Ф. Мински, содержание которой и попытки эмпирического тестирования достаточно представлены в отечественной литературе (см., например, [6]). Кроме того, острая полемика, в том числе и среди российских экономистов, идет вокруг считающейся в большинстве случаев частью посткейнсианского подхода современной денежной теории (Modern Monetary Theory, MMT) [7], которая уже внесла значительный вклад в понимание денег, долга и макроэкономической политики.…”

Section: материал и методы исследованияunclassified

«the Lucas Critique» and Economic Theory Development: History and the Present

Kusurgasheva¹,

Davydova²

2022

Вестник Алтайской академии экономики и права

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Статья посвящена оценке революции рациональных ожиданий в контексте развития экономической теории. Выделены ограничения современных макроэкономических исследований на основе использования стандартных DSGE-моделей. Дана характеристика роли, которую сыграла в смене кейнсианско-неоклассического синтеза школой новых классиков так называемая «критика Лукаса». Выделены ее гносеологические корни (проблема микрообоснования макроэкономики) и суть. В соответствии с традиционным подходом критика Лукаса трактуется как нормативный набор правил построения макроэкономических моделей, в основе которых должны лежать неоклассические принципы индивидуализма, рациональности и равновесия. Рассмотрены причины широкого признания критики Лукаса и ее влияния на дальнейшее развитие экономической теории. Акцентировано внимание на влияние идеологии в этом процессе. Показано, что результатом критики Лукаса явилось формирование макроэкономического консенсуса в форме нового неоклассического синтеза. Обосновано положение о том, что проблема микрообоснования макроэкономики не решена в рамках современной экономической теории и сделан вывод о необходимости развития системной парадигмы.

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“…Наиболее красноречивым примером является опыт Греции в 2010-е годы, «увенчавшийся» дефолтом (Argitis and Nikolaidi, 2014;Бешенов, Розмаинский, 2015). Впрочем, такая политика вряд ли привела к хорошим результатам и в других странах Европы, например, в Португалии (Новикова, Розмаинский, 2020), Италии (Rozmainsky and Rodionova, 2021), Нидерландах . Не случайно, что автор ГФН -Хайман Мински -для более «фундаментального» «лечения» финансовой нестабильности рекомендовал проводить институциональные реформы, направленные на ограничение краткосрочного кредитования долгосрочных инвестиционных проектов и обеспечение меньшей капиталоёмкости экономики.…”

Section: гипотеза финансовой нестабильности: основные теоретические а...unclassified

An analysis of the French non-financial private sector based on the Financial Instability Hypothesis

2022

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The article analyzes the dynamics of the financial fragility of French private non-financial firms using the Financial Instability Hypothesis developed by Hyman Philip Minsky. This hypothesis contains analytical tools to explore the relationship between the course of the business cycle and the dynamics of the structure of private firms' financial flows. Our sample includes 208 private sector enterprises in France. The study covers time period from 1998 to 2018. The source of data is the Thomson Reuters platform. Related indicators are considered separately for three categories of companies depending on the size of their revenue -small, medium and large businesses -and for ten categories of companies depending on their industry affiliation. Three criteria are used to classify the companies into hedge firms, firms with speculative financing and Ponzi firms. Our empirical analysis showed that before the onset of the Great Recession in the French economy, the share of Ponzi firms grew, and reached its maximum at the peak of economic hardship. In line with the Financial Instability Hypothesis, the research findings confirm that the accumulation of financial fragility is associated with the onset of the Great Recession in France. It is further shown that small firms are much more financially fragile compared to medium and large businesses, and the real estate sector turned out to be the most financially fragile sector of the French economy.

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The financial fragility hypothesis and the debt crisis in Italy in the 2010s

Cited by 6 publications

References 15 publications

An empirical analysis of the influence of financialization on the innovative activity of the firms’ managers in Italy

An empirical analysis of the influence of financialization on the innovative activity of the firms’ managers in Italy

«the Lucas Critique» and Economic Theory Development: History and the Present

An analysis of the French non-financial private sector based on the Financial Instability Hypothesis

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