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).

Paul Krugman has also written a nice piece, entitled "The Ice Age Cometh" on the evolutionary psychology behind irrational asset price bubbles.