Describe a financial environment as fragile

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Hyman Minsky’s “financial instability hypothesis” employs the key concept of financial “fragility.” What does it mean to describe a financial environment as “fragile”? In the short-run, during a period of economic growth, Minsky argues that modern capitalism has an inherent tendency to become more financially fragile–explain why, and clarify what then typically results, in Minsky’s view. Finally, on what grounds does Minsky also claim that, in the long-run (over the course of several cycles), “stability is destabilizing”?

Reference no: EM13976331

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