Home

Finance

Oct 05

Minsky's theory of financial crises

Hyman MinskyHyman Minsky has proposed a simplified explanation that is most applicable to a closed economy. He theorized that financial fragility is a typical feature of any capitalist economy. High fragility leads to a higher risk of a financial crisis. To facilitate his analysis, Minsky defines three types of financing firms choose according to their tolerance of risk. They are hedge finance, speculative finance, and Ponzi finance. Ponzi finance leads to the most fragility.

Vote
42
Sep 30

Causes and consequences of financial crises

New York City, Midtown Manhattan

Strategic complementarities in financial markets

It is often observed that successful investment requires each investor in a financial market to guess what other investors will do. George Soros has called this need to guess the intentions of others 'reflexivity'. Similarly, John Maynard Keynes compared financial markets to a beauty contest game in which each participant tries to predict which model other participants will consider most beautiful.

Vote
62
Jun 23

Webby Awards

The Webby Awards

Vote
27

 

Gambling

more tags
Theme & Icons by N.Design Studio
Syndicate content