Wednesday, October 24, 2018

Brian Romanchuk — Primer: Minsky's Financial Instability Hypothesis

The "Financial Instability Hypothesis" is a phrase describing the economist Hyman Minsky's views on the driver of the business cycle. The description here is based on the essays found in the book Can "It" Happen Again? Essays on Instability and Finance. The objective here is to capture highlights of his thinking, and not attempt to cover the breadth of his world view.
If the reader wishes to find a fuller description, I would recommend the essay "The Financial Instability Hypothesis: A Restatement" on pages 90-116. This article is a very high level overview of that summary article. At the end of this article, I will comment on some of the implications of the hypothesis....
Bond Economics
Primer: Minsky's Financial Instability Hypothesis
Brian Romanchuk

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