Another Minsky book link

Having mentioned Randy Wray’s new book on H. P. Minsky (Why Minsky Matters) in a recent post, I should mention that there the publisher is giving away the first chapter away for free on its website. The chapter outlines Minsky’s biography and his theory of financial fragility and the relevance of his work to recent times, including of course the US financial crisis, which began in 2007 and included the famed “Minsky moment” of 2008. The chapter approaches the subject in a way that a beginner should be able to understand.

A direct link to the chapter in pdf format is at this link. The webpage for the book is here.

The chapter begins with a quotation from Minsky, pointing out that good economic times eventually give rise to excessive financial risk-taking:

Stability—even of an expansion—is destabilizing in that the more adventuresome financing of investment pays off to the leaders and others follow.
—Minsky, 1975, p. 125
I hope to get back to Minsky’s analysis of this pattern–in which financial fragility develops over the course of an expansion–in a future post. We are seeing some signs of this phenomenon recently in my view. Also still coming is a promised return to the role of the distribution of income and/or wealth.