(on Hyman Minsky, an American economist who lived between 1919 and 1996) Minsky argued that stability creates instability. In financial markets long periods of stability promote ever-increasing risk taking, with market participants assuming increasingly extreme positions and taking on more and more debt. The longer the period of stability, the greater the financial excess and the more severe the inevitable correction. The conundrum government faces is that, in creating a stable economy, they ultimately generate a serious financial crisis. - Sandy McGregor
Posted on: Fri, 16 May 2014 14:03:02 +0000
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