Mr. Minsky long argued markets were crisis prone. His 'moment' has arrived. -The Wall Street Journal In his seminal work, Minsky presents his groundbreaking financial theory of investment, one that is startlingly relevant today. He explains why the American ecomy has experienced periods of debilitating inflation, rising unemployment, and marked slowdowns-and why the ecomy is w undergoing a credit crisis that he foresaw. Stabilizing an Unstable Ecomy covers: The natural inclination of complex, capitalist ecomies toward instability Booms and busts as unavoidable results of high-risk lending practices Speculative finance and its effect on investment and asset prices Government's role in bolstering consumption during times of high unemployment The need to increase Federal Reserve oversight of banks Henry Kaufman, president, Henry Kaufman & Company, Inc., places Minsky's prescient ideas in the context of today's financial markets and institutions in a fascinating new preface. Two of Minsky's colleagues, Dimitri B. Papadimitriou, Ph.D. and president, The Levy Ecomics Institute of Bard College, and L. Randall Wray, Ph.D. and a senior scholar at the Institute, also weigh in on Minsky's present relevance in today's ecomic scene in a new introduction. A surge of interest in and respect for Hyman Minsky's ideas pervades Wall Street, as top ecomic thinkers and financial writers have started using the phrase Minsky moment to describe America's turbulent ecomy. There has never been a more appropriate time to read this classic of ecomic theory.
Hyman P. Minsky, Ph.D., was an American economist who studied under Joseph Schumpeter and Wassily Leontief. He taught economics at Washington University, University of California--Berkeley, Brown University, and Harvard University. Minsky joined the Jerome Levy Economics Institute of Bard College as a distinguished scholar in 1990, where he continued his research and writing until a few months before his death in October, 1996. His two seminal books were Stabilizing an Unstable Economy and John Maynard Keynes.