What’s a Minsky Moment, and why the world worries about one

A Minsky Moment - the end stage of a prolonged period of economic prosperity - and why policy makers worry.
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By Enda Curran

The mere mention of a "Minsky moment" — a sudden crash of markets and economies that are hooked on debt — is enough to send shudders through policy makers. The theory stems from the work of Hyman Minsky, a US economist who specialized in how excessive borrowing fuels financial instability. Sky-high debt levels around the world, coupled with towering financial market valuations, have kept Minsky's theory prominent, drawing warnings from the International Monetary Fund and others. US Treasury Secretary Janet Yellen once described his work as "required reading."

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