The Indian Anomaly: Rethinking Credit Rating Agency Regulation from the Economic Perspective of Hyman Minsky

Posted: 24 Oct 2012

Date Written: September 1, 2012

Abstract

Policymakers have blamed the credit rating agencies for the recent financial crisis – but they could be wrong. India can aid in understanding whether the agencies can still be relied upon as private “gatekeepers” in financial markets, or whether public institutions must take primary responsibility. The economist, Hyman Minsky, advocated for robust public regulation and a limited role for private actors. India can be seen as an example of his theories. If India’s agencies cannot prevent speculative credit from causing future economic problems, the problems could suggest that more structural measures are necessary to counter instability, as Minsky predicted. Analyzing India and the credit ratings agencies through the frame of Minsky’s economic theories offers insights into how best to reform financial regulation to prevent future economic collapse.

Keywords: credit rating agencies, financial regulation, law and economics

Suggested Citation

Kirshner, Jodie A., The Indian Anomaly: Rethinking Credit Rating Agency Regulation from the Economic Perspective of Hyman Minsky (September 1, 2012). Available at SSRN: https://ssrn.com/abstract=2160857

Jodie A. Kirshner (Contact Author)

University of Cambridge ( email )

Cambridge, CB3 0DS
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
724
PlumX Metrics