Stability Trap: The Inevitable Destruction of the Minsky Cycle

Conventional economic theory assumes that financial markets naturally tend toward equilibrium and stability. The brilliant, unorthodox economist Hyman Minsky proved the exact opposite: stability is not the cure for market crashes; it is the direct cause of them. The Minsky Cycle dictates a terrifying macroeconomic law. When an economy experiences a long, prosperous period of calm, investors and ...