Minsky’s Ideas Continue To Grow In Popularity

Hyman Minsky is in the news again. After sitting on the sidelines of mainstream economics for most of his career, his ideas now pop up on a regular basis as analysts (and journalists) look back and try to make sense of the financial crisis.

“Minsky's main idea is so simple that it could fit on a T-shirt, with just three words,” writes Duncan Wheldon for the BBC. “Stability is destabilising.”

Theorists (not only economists) are often attracted to equilibrium models because they are analytically tractable, and theoreticians need something to show at the end of the day just like the...