Hyman Minsky Quotes:
Ocupation: Economist
Life: September 23, 1919 - October 24, 1996
Birthday: September 23
Death: October 24
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.
topic: World, Ratios, Portfolios, Regulators, Financial Institutions, Absorption, Constrain
