Paul Krugman has also written a nice piece, entitled "The Ice Age Cometh" on the evolutionary psychology behind irrational asset price bubbles.
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.
Showing posts with label psychology. Show all posts
Showing posts with label psychology. Show all posts
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).
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