Authors:

Hyman Minsky Quotes

Stability leads to instability. The more stable things become and the longer things are stable, the more unstable they will be when the crisis hits.

Stability leads to instability. The more stable things become and the longer things are stable, the more unstable they will be when the crisis hits.

Hyman Minsky
Unstable, Stability, Crisis

Success breeds a disregard of the possibility of failure.

Hyman Minsky
Possibility, Disregard
Hyman Minsky (2008). “Stabilizing an Unstable Economy”, McGraw Hill Professional

Unless we understand what it is that leads to economic and financial instability, we cannot prescribe -- make policy -- to modify or eliminate it. Identifying a phenomenon is not enough; we need a theory that makes instability a normal result in our economy and gives us handles to control it.

Hyman Minsky
Giving, Needs, Normal
Hyman Minsky (2008). “Stabilizing an Unstable Economy, Part 3 - Economic Theory”, p.111, McGraw Hill Professional

In a world of businessmen and financial intermediaries who aggressively seek profit, innovators will always outpace regulators; the authorities cannot prevent changes in the structure of portfolios from occurring. What they can do is keep the asset-equity ratio of banks within bounds by setting equity-absorption ratios for various types of assets. If the authorities constrain banks and are aware of the activities of fringe banks and other financial institutions, they are in a better position to attenuate the disruptive expansionary tendencies of our economy.

Hyman Minsky
World, Ratios, Portfolios

If the authorities constrain banks and are aware of the activities of fringe banks and other financial institutions, they are in a better position to attenuate the disruptive expansionary tendencies of our economy.

Hyman Minsky
Political, Politics, Financial

You May Also Like: