Minsky's financial instability hypothesis, accounting information and the 2007-9 financial crisis in the UK and US | Macquarie University ResearchOnline

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Title: Minsky's financial instability hypothesis, accounting information and the 2007-9 financial crisis in the UK and US
Related: Accounting history, Vol. 16, Issue 4, (2011), p.423-437
DOI: 10.1177/1032373211417991
Publisher: Sage Publications
Date: 2011
FoR/RFCD Code(s): 150100 Accounting, Auditing and Accountability
Author/Creator: Barnes, Paul
Description: This paper examines the financial crisis of 2007–9 in the UK and US in terms of the financial instability hypothesis (FIH), a theory of boom, bust and financial crises. It is shown that in a similar way to the crises of 1866 and 1987 (Barnes, 2007) the FIH provides an important depiction of the 2007–9 crisis and how it came about. However, it does not recognize: (1) the role of accounting information and how it may contribute to boom and bust and be used to change perceptions and mislead; and (2) the likelihood of fraud and financial swindles, all features of the 2007–9 crisis.
Description: 15 page(s)
Subject Keyword: 150100 Accounting, Auditing and Accountability
Subject Keyword: big bath accounting
Subject Keyword: crash
Subject Keyword: fair value accounting
Subject Keyword: financial crisis 2007–9
Subject Keyword: fraud
Subject Keyword: informational asymmetry
Subject Keyword: mark to market
Subject Keyword: Minsky
Resource Type: journal article
Organisation: Macquarie University. Dept. of Accounting and Corporate Governance

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