Hyman Minsky podcast

This is from Economics in Ten podcast, season seven, episode one. When the Queen asked economists why nobody saw the 2008 financial crisis coming, the honest answer was that Hyman Minsky had, decades earlier. His ‘financial instability hypothesis’ and the idea of a ‘Minsky moment’ (the point at which a debt-fuelled boom tips into a crash) became suddenly fashionable after 2008. The episode covers why stability can paradoxically sow the seeds of instability, and why Minsky believed financial markets needed tight regulation. A good one for macro students, particularly when teaching economic cycles and the causes of recession. Accessible and topical, with the 2008 financial crisis providing a ready hook for students: it sits slightly beyond standard spec but maps well onto business cycle and macroeconomic instability content.  Listen here