Since the outbreak of the crisis, banks appear at best useless and at worst harmful. The recent standard theory indeed constructed an analysis showing that banks had nothing specific to offer. However, the theory of endogenous money provides a consistent monetary theory and gives to the bank a...

While the financial system has experienced a historical crisis, questions about the role of banking sector are rising among the public and commentators. Although Minsky was one of the few authors who studied the link between banks, risk and crisis, nevertheless his approach seems incomplete for...