Can the 2008 subprime crisis be viewed as a “Minsky moment”?

Economics Discussion

Part1:

Watch the movie https://www.amazon.com/Boom-Bust-Terry-Jones/dp/B01CUSYVJK/ref=sr_1_2?dchild=1&keywords=boom+bust+boom&qid=1585659196&sr=8-2 (Links to an external site.)

and read the following: http://www.levyinstitute.org/publications/when-two-minskyan-processes-meet-a-large-shock-the-economic-implications-of-the-pandemic (Links to an external site.)

https://unctad.org/en/pages/newsdetails.aspx?OriginalVersionID=2300 (Links to an external site.)

Then answer the following questions:

1. According to the documentary, can the 2008 subprime crisis be viewed as a “Minsky moment”?
2. According to the readings, can the crisis we are living now be viewed as a “Minsky moment”? What are the processes today that can lead us to characterize it as such? What part of the readings did you have a hard time grasping?

Part2:

What are the main points in Minsky’s Financial Instability Hypothesis? Write a 1-2 paragraph post about it.

Solution: