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[Review] Stabilizing an Unstable Economy (MINSKY) Summarized.
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Stabilizing an Unstable Economy is a major work of macroeconomic theory by Hyman Minsky, a leading Post Keynesian economist. The book argues that financial crises are not unusual accidents caused only by outside shocks; they are built into the logic of capitalist finance itself. Minsky explains how periods of apparent stability encourage more borrowing, weaker balance sheets, and increasingly fragile financial structures. Over time, this can push firms and households from safer hedge finance into speculative and then Ponzi finance, creating conditions for crisis. The book also examines the role of public policy, especially central banking and fiscal intervention, in limiting damage when instability emerges. It is both a theory of how booms turn into busts and a policy-oriented argument for stronger oversight, lender of last resort support, and full employment measures. Written in an academic style but with broad historical relevance, it remains one of the most influential books on financial instability and crisis dynamics.
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