Uploaded August 2016 | Updated September 2026, 3 weeks ago

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Professor L. Randall Wray discussing the "virtuous cycle" of Minsky that leads to bubbles. It is mainly a product of poor incentives, rather than irrational exuberance. Minsky's Financial Instability Hypothesis posited that instability is endemic to capitalism, in part because stability is destabilizing: after a period of tranquility, people will change their behavior to take greater and greater risk.

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