happens everyday
I am a beginner in economics but reading Positive Money book 'Modernising Money' by Ben Dyson and Andrew Jackson. My interest grew in the work of Minsky and encouraged me to read more about Keynes. Keynes economics promote the view that in the long run economics system converge into an equilibrium with the support of the government. Nevertheless you cannot help the role of banks in the system and wonder after reading the following quote: “But this long run is a misleading guide to current affairs. In the long run we are all dead. Economists set themselves too easy, too useless a task if in tempestuous seasons they can only tell us that when the storm is long past the ocean is flat again.” (Keynes, 1923) This imply that economists did not comprehend why we had a financial crisis and collapse. Minsky with his model 'Financial Instability Hypothesis' strive to answer this question. The idea in Minsky's work in a 'simplistic summary is that in very
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