Stabilizing an Unstable Economy

By Hyman P. Minsky,

Book cover of Stabilizing an Unstable Economy

Book description

"Mr. Minsky long argued markets were crisis prone. His 'moment' has arrived." -The Wall Street Journal

In his seminal work, Minsky presents his groundbreaking financial theory of investment, one that is startlingly relevant today. He explains why the American economy has experienced periods of debilitating inflation, rising unemployment, and marked…

When you buy books, we may earn a commission that helps keep our lights on (or join the rebellion as a member).

Why read it?

2 authors picked Stabilizing an Unstable Economy as one of their favorite books. Why do they recommend it?

Minsky’s thesis on financial instability is a brilliant intellectual blow against the liberal legend concerning the balancing powers of (financial) markets.

It suggests that manifest crises and breakdowns are not simply caused by external tremors, by fiscal or political coups de théâtre; rather, they are brought about by the parameters and endogenous movements of the financial economy itself.

Unlike cybernetic and self-regulating systems, the financial market is inclined to be spooked by its own tranquillity and destabilized by its own stability. The very efficiency of its functioning turns out to be utterly dysfunctional.

Hyman Minsky might well have been the most underrated economist during the second half of the twentieth century. In Stabilizing an Unstable Economy, Minsky identified the psychological factors that create in financial markets and exacerbate economic downturns. Viewed against the backdrop of recent financial crises, his writings appear prescient. Readers of this book will discover that Minsky explained that the same factors which underlie economic instability also underlie the creative spark that produces economic progress. Readers will also learn that Minsky warned about being naïve in thinking that we can avoid instability.

Want books like Stabilizing an Unstable Economy?

Our community of 12,000+ authors has personally recommended 100 books like Stabilizing an Unstable Economy.

Browse books like Stabilizing an Unstable Economy

Book cover of Thinking, Fast and Slow
Book cover of Nudge: Improving Decisions about Health, Wealth, and Happiness
Book cover of Irrational Exuberance

Share your top 3 reads of 2024!

And get a beautiful page showing off your 3 favorite reads.

1,593

readers submitted
so far, will you?

5 book lists we think you will like!

Interested in economics, capitalism, and the economy?

Economics 412 books
Capitalism 219 books
The Economy 183 books