Minsky’s Financial Instability Hypothesis and Modern Economics
The basic thesis is that, in the years since the global financial crisis, in response to the weakened legitimacy of global institutions and rising market volatility and political uncertainty, people at all levels of power, and in ever-increasing spheres of life, make use of the logic of financial speculation.
Max Read • Web3 as a "speculative community"
The financial crisis of 2008 is a good example where this leads to problems.14 All the models at the time ignored the possibility that homeowners and businesses might default on their loans. Economists knew that default was important, but including it in their models was difficult, so they left it out.
J. Doyne Farmer • Making Sense of Chaos: A Better Economics for a Better World
Just read Balaji’s piece on the sovereign debt crisis. Geez. There’s a memorable matrix that defines events as “ignorable,” “decadal,” or “civilizational.” So for example, the 1993 WTC bombings were ignorable, while 9/11 made the decade. The H1N1 flue was ignorable, but COVID made the decade. The dot-com crash was ignorable, but the 2008 financial
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