Role and specificity of bank in Minsky’s work: an attempt to answer Dymski’s critic

Abstract

This work is aimed at analyzing the critics formulated by G. Dymski to the role of the banks in the theory of H. Minsky, specifically in relation to their influence in the cyclical behavior of the economy. Firstly, the paper presents the importance attributed by Minsky to the financing of the portfolio positions. After that, the Dymski critics to this perspective are considered, and, finally, those critics are evaluated in the context of the specificity that Minsky attributes to the banks in its cash-flows decisions, and in the impacts of that in the cyclical behavior of the economy.