Hyman Minsky

Hyman Minsky was an American economist known for his theories on financial instability and economic cycles. He suggested that economies move through phases of stability and instability, primarily due to the behavior of financial markets. Minsky proposed the "Financial Instability Hypothesis," which explains how periods of economic prosperity can lead to excessive risk-taking, eventually resulting in financial crises. His work highlights how confidence, speculation, and borrowing can shift from cautious to reckless, making economies vulnerable to downturns. Minsky's ideas have gained renewed attention, especially during financial crises, as they help explain the dynamics of economic booms and busts.