The Financial Instability Hypothesis was associated with the economist Hyman Minsky, although it could be viewed as Minsky’s interpretation of Keynes. One summary of the concept is that stability is destabilising: economic stability leads to changes in behavioural changes that destabilise the economy….Bond Economics
Primer: Financial Instability Hypothesis (Part I)
Brian Romanchuk
It's still quite amazing that the Austrian explanation of the boom/bust cycle is ALWAYS suppressed and ignored by all non-Austrians. I pointed out Minsky's fraudulent avoidance of this topic years ago. Steve Keen doesn't touch it. Keynes hung out with Hayek before writing TGT but Keynes never mentioned Austrian analysis either. I submit that this avoidance is due to the fact that Keynesians suspect that they cannot refute the Austrian analysis. I blame it all on white knuckle fear on the part of the Keynesians. It's quite like MSNBC, Russiagaters and the Russiagate Hoax.
ReplyDeleteI’ve got a section of my manuscript on the Austrian Business Cycle Theory. Haven’t published it online (yet).
ReplyDeleteBrian Romanchuk: I look forward to reading it.
ReplyDeleteIt’s based on Rothbard, who is perhaps not the greatest source. That said, what he wrote is largely what I saw in internet/financial market commentary. Since I’m finishing off Minsky, the Austrian section is on the back burner.
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