THWARTING INSTITUTIONS AND FINANCIAL STABILITY: A NEW ROLE FOR DEVELOPMENT BANKS IN THE MINSKYIAN INSTITUTIONALIST THEORY

  • This paper aims to introduce a new topic for the economic policies associated with financial instability, both theoretically and through data analysis, discussing the roots of instability and the policy recommendations in the literature of Minsky and examining the role of National Development Banks (NDBs) in the economy. The purpose of the work is to acknowledge NDBs as Thwarting Institutions in a Minskyian sense. These special financial institutions have two sides of effects in the economy, one side related to their financial nature, through their capacity to provide finance to key sectors of the economy, and the other related to the real effects the financing of development projects implicate. Due to these influences, National Development Banks can be considered strong pillars to strengthen the economy, providing additional mechanisms for economic policies for stabilisation and recovery purposes, which is the definition of Thwarting Institution. The study case of the Brazilian National Bank for Economic and Social Development (BNDES) provided a detailed data analysis of the general performance of the bank between 2000-2018, its importance for the economy and especially the countercyclical role of the bank after the 2008s’ financial crisis. The last section will provide the analysis of financial stability in Brazil, showing important variables both from the financial and real side of the economy, in accordance with the Minskyian theory.

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Metadaten
Author:Kesia Braga
Referee:Gary Dymski
Advisor:Robert Guttmann, Eckhard Hein
Document Type:Master's Thesis
Language:English
Date of first Publication:2019/12/20
Publishing Institution:Hochschulbibliothek HWR Berlin
Granting Institution:Hochschule für Wirtschaft und Recht Berlin
Date of final exam:2019/05/31
Release Date:2019/12/20
Tag:Institutions; Post-Keynesian
Development Banks; Financial Instability; Macroeconomics
Page Number:51
Institutes:FB I - Wirtschaftswissenschaften / International Economics M.A.
Licence (German):License LogoUrheberrechtsschutz