Minsky’s Financial Instability Hypothesis And The World’s Central Bankers

  • Hyman Minsky describes three phases towards financial instability.
  • He stresses the endogenous nature of the process; shocks do not necessarily come from outside, but the instability can be generated by the system itself.
  • Some argue that the central banks are blind to this process and contribute to or even produce the instability.

Minsky’s Financial Instability Hypothesis And The World’s Central Bankers