Credit Crunch, a Minsky moment
This week in Outside the Box I strive to address an issue that I have been meditating on for quite some time. Precisely, how have we arrived at the current credit crisis that now threatens the domestic and global economy. I believe one of the underlying reasons is what is termed the "Minsky Moment," the topic of this weeks Outside the Box. If we understand how we have arrived at this crisis, we may get some clues as to how it will unfold. I am going to take up other thoughts on this topic next Friday. Charles Whalen has written a very clear essay. He is from the The Levy Economics Institute of Bard College which is a nonprofit, nonpartisan public policy research organization. I have quoted from papers from the Levy Institute on many occasions. The Institute is independent of any political or other affiliation, and encourages diversity of opinion in the examination of economic policy issues while striving to transform ideological arguments into informed debate. I have often f...