A hipótese da fragilidade financeira de Minsky e a regulação financeira

Abstract

Given the complexity of financial instruments currently in use, the purpose of this study is to examine, according to the proposed economic theory of Hyman P. Minsky, the factors that led to the recent financial crisis, which began in the mortgage market and expanded throughout the financial system. The residential mortgage market, as well as the financial regulation and supervision frameworks, was examined based on the Financial Fragility Hypothesis and the theory of financial cycles, as proposed by Minsky. The framework that the financial structure created prior to the crisis would not have been possible without the use of credit derivatives. This research finds that the use of credit derivatives were the primary financial instrument that drove the expansion of the credit cycle and produced vast losses during the crisis. This new financial structure, burdened by a complex structured finance, amplified the positive outlook of economic units and that allow very high credit expansion rates for a long period. And its collapse required the ensuing government intervention in the economy. Such intervention, which occurred through fiscal and monetary policies and a direct rescue of failing institutions, was necessary in both preventing the full collapse of the entire financial system and in stabilizing it. This study additionally applies an econometric model of the Minskyan theory to test whether the use of credit derivatives contributed to expanding the fragility of the financial system during its expansion. Finally, the study analyzes the drivers of the strong growth rate of the credit derivatives markets in the context of financial regulation, as such markets are exposed to high risk and therefore have a significant potential to increase financial fragility.