Hyman Minsky (economist)

Hyman Minsky was an economist who studied how financial markets and borrowing behaviors can create economic instability. He believed that during economic booms, banks and individuals take on increasing risk, leading to financial fragility. When confidence declines, this fragility can trigger sharp downturns or crises. Minsky's ideas highlight the cyclical nature of capitalism, emphasizing that periods of stability often contain the seeds of future instability. His work helps explain why economies sometimes experience sudden, severe downturns, and underscores the importance of managing financial risks to promote stability.