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Hyman Minsky

Hyman Minsky was an American economist known for his work on financial markets and instability. Minsky is best known for his theory of financial instability, which suggests that financial markets tend to be prone to periods of instability and crisis. According to Minsky, these crises are often the result of a long period of stability and prosperity, during which investors become increasingly confident and take on more and more risk.

Eventually, this risk-taking leads to a build-up of unsustainable financial positions, and a crisis ensues when investors become unable to meet their financial obligations. Minsky's theory was developed in the 1950s and 1960s, but it has gained renewed attention in recent years as a possible explanation for financial crises such as the 2008 global financial crisis. Minsky died in 1996.

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