Thursday on PBS Newshour, Nobel prize-winning economist Paul Krugman explained the relevance of Hyman Minsky’s theory on the current economic crisis.
“One of his arguments was exactly that you have, you have a depression, you have a bad scene and everybody gets cautious and that caution gives you several decades of stability and as the stability goes on people forget the dangers and they make the same mistakes and get you right back into another one,” he said. “So there was a natural cycle.”
Krugman added that in addition to this natural cycle, conservatives had pushed a “religiously pro-market” ideology that claimed all regulation was harmful and the government was always the problem.Read it at Raw Story
Krugman explains the gradual march to economic crisis
by Eric W. Dolan
The PBS video is included at the end of the article