“Minsky posited that after a financial crisis, regulators clamp down on what is permissible, producing an extended period of financial stability. As Minsky notes however, ‘stability breeds instability’ over the long run. Actors mistake the lack of volatility as evidence of ‘financial repression’ and their own ability to successfully manage risk. Consequently, they lobby to remove constraints.”
Four Galtons and a Minsky
Four Galtons and a Minsky
Four Galtons and a Minsky
“Minsky posited that after a financial crisis, regulators clamp down on what is permissible, producing an extended period of financial stability. As Minsky notes however, ‘stability breeds instability’ over the long run. Actors mistake the lack of volatility as evidence of ‘financial repression’ and their own ability to successfully manage risk. Consequently, they lobby to remove constraints.”