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.
The chapter begins with a quotation from Minsky, pointing out that good economic times eventually give rise to excessive financial risk-taking:
Stabilityeven of an expansionis destabilizing in that the more adventuresome financing of investment pays off to the leaders and others follow.Minsky, 1975, p. 125