RT Journal Article
SR Electronic
T1 Minsky and Modern Finance
JF The Journal of Portfolio Management
FD Institutional Investor Journals
SP 81
OP 88
DO 10.3905/jpm.2000.319748
VO 26
IS 2
A1 Perry Mehrling
YR 2000
UL https://pm-research.com/content/26/2/81.abstract
AB Economic theory offers us two ways of understanding the events of Fall 1998: the banking approach (here associated with Minsky), and the finance approach (here associated with Merton, Scholes, and the firm Long Term Capital Management). The main lesson of the LTCM experience is that the modern theory of asset pricing (the finance approach) is incomplete and needs to be supplemented by a theory of liquidity (the banking approach).