The Impact of the 2008 Financial Crisis on Hyman Minsky: Looking at Financial Fragility in Keynesian Macroeconomic Thought


Spring 5-11-2021

Author's School

Olin Business School

Degree Name

Bachelor of Science in Business Administration (BSBA)

Document Type

honors paper

Restricted Access



Prior to the financial crisis in 2008, the work of Hyman Minsky and specifically his concept of financial fragility were not acknowledged within mainstream macroeconomics. Following 2008, I find a positive and persistent impact of the financial crisis on the work of Hyman Minsky. Before the financial crisis, the neoclassical synthesis and new classical economists believed the financial system did not affect the stability of the economic system. After the financial crisis and Great Recession, many economists shifted their views to what Minsky had been arguing for decades. In addition to an explanation of the change in theory I'll quantitatively show the change through citation analysis. This analysis uses a Synthetic Control Model with control units as papers from the neoclassical synthesis and new classical schools of thought.




Tat Chan, Steven Fazzari

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