Minsky (Hyman Minsky)

Hyman Minsky was an economist who explained how financial instability occurs. He believed that during stable times, people and banks become increasingly willing to take on debt, leading to risky investments. When those investments falter, confidence drops, and the economy can quickly shift into a crisis—a pattern he called the "Financial Instability Hypothesis." Essentially, Minsky's work highlights how periods of economic stability can sow the seeds of future instability, emphasizing the dynamic and sometimes unpredictable nature of financial markets and the importance of understanding debt cycles.