“In a world of businessmen and financial intermediaries who aggressively seek profit, innovators will always outpace regulators; the authorities cannot prevent changes in the structure of portfolios from occurring. What they can do is keep the asset-equity ratio of banks within bounds by setting equity-absorption ratios for various types of assets. If the authorities constrain banks and are aware of the activities of fringe banks and other financial institutions, they are in a better position to attenuate the disruptive expansionary tendencies of our economy.”
Quote by Hyman Minsky
Author
Hyman Minsky
Hyman Minsky was a renowned economist, born on September 23, 1919, and passed away on October 24, 1996. He had a profound impact on the field of economics, particularly in the areas of financial instability and macroeconomic policy. more
You May Also Like
Source: Circumcision: The Hidden Trauma : how an American Cultural Practice Affects Infants and Ultimately Us All
“The real satisfaction from mathematics is in learning from others and sharing with others.”
“Stay in these rooms for years and years, live on forever in a glorious museum.”
“When a hadeeth is found to be saheeh, then that is my madhhab.”
“Your longevity and health are more determined by your ZIP code than they are by your genetic code.”