Stabilizing an Unstable Economy

By Hyman P. Minsky

• Reading level: Very Hard
• Page Count: 432

In Stabilizing an Unstable Economy, Hyman Minsky presents his groundbreaking Financial Instability Hypothesis, arguing that financial systems are inherently prone to instability and crises. Minsky explains how periods of economic stability can lead to excessive risk-taking, speculative bubbles, and eventual collapse. He critiques conventional economic theories and offers policy solutions to mitigate instability, such as stronger regulation and proactive government intervention. Written decades before the 2008 financial crisis, Minsky’s work remains eerily prescient and essential for understanding the cyclical nature of financial markets and the need for robust economic safeguards. A must-read for economists, policymakers, and anyone interested in the roots of financial crises.