Stiglitz brings together this edited collection that presents a series of studies on contemporary macroeconomic issues and contains a set of key lessons for macroeconomic theory and policies from the recent global financial crisis

This paper analyzes what assumptions on formation of expectations are consistent with Minsky's Financial Instability Hypothesis (FIH) and its corollaries. The FIH establishes that financial relations evolve over time turning a stable system into an unstable one. Financial crises would be more...