1. Understanding Financialization: Standing on the Shoulders of Minsky
Charles J. Whalen
Baldy Center for Law & Social Policy
SUNY University at Buffalo, USA
Financialization Conference, June 9, 2017, Rzeszow, Poland

2. “The time has come…to speak of many things!” Main Points
Hyman Minsky Offered Penetrating Observations on Money Manager Capitalism
He also Sketched a Powerful Analytical Framework, Yielding a Theory of US Capitalist Development
Minsky’s Observations & Framework Represent a Major Contribution to the Financialization Literature

4. Observations on Money Manager Capitalism
Emerged in the Early 1980s
Money Managers Replaced Corporate Managers as ‘Masters of the Economy’
Consequences & Dangers

5. Consequences of Money Manager Capitalism
The Short View Replaced the Long View
Financial Innovation (Securitization, etc.)
Further Globalization

6. Dangers of Money Manager Capitalism
Slower Technological Progress
Greater Economic Instability
Increased Worker Insecurity
Sharper Income Inequality

7. The Continuing Relevance of Money Manager Capitalism
The New York Times
BUSINESS DAY
Route to Air Travel Discomfort Starts on Wall Street
By NELSON D. SCHWARTZ MAY 28, 2017

8. Minsky’s Theory of US Capitalist Development
Foundation: Evolutionary and Institutionally Oriented View of the Economy (Rooted in Schumpeter & Keynes)
Finance: A Key Role in Economic Life
Focus: The Interaction of Finance & Industry
Money Manager Capitalism: The Latest Stage
Some Dimensions: Activity & Entity Financed; Financing Source; Locus of Power

9. Extending Minsky’s Theory

10. Understanding Financialization
Shareholder Value
Money Managers and Trading
Evolution of Banking and Finance
Regime of Accumulation
And More….

11. ‘Economic systems are not natural systems…The task confronting economics today may be characterized as a need to integrate the insights of Schumpeter and Keynes.’ — Minsky (1986)