Challenging the received view, exploding popular myths ... and sometimes just having a rant. Topics covered on this blog will be mostly socio-economic issues, but are also likely to include some random deviations.
Friday, January 8, 2010
Forever blowing bubbles
Hyman Minsky's model of the credit cycle includes five stages: displacement, boom, euphoria, profit-taking, and panic. See this article "The Minsky Moment" from the New Yorker (February 4, 2008).
Paul Krugman has also written a nice piece, entitled "The Ice Age Cometh" on the evolutionary psychology behind irrational asset price bubbles.