HYMAN P. MINSKYUniversity of KIRKLARELI

Suray CHARIYEVA

2100202651

Who is he?• Hyman Minsky

(sept.23,1919-oct.24,1996) – was an american economist, professor of economics at Washington University.

Hyman Minsky Phillip is perhaps the most original and interesting representative post-Keynesianism - the most radical trend in modern macroeconomics , broke with the majority of the ideas and basic assumptions of traditional economic theory.

• For all the radical and heretical against economic establishment, Minsky was never mind to become a part of this establishment. He always wanted his ideas became recognized and he himself , in general, not even attributed to representatives of post-Keynesianism .

• However, it should be noted that modern post-Keynesian macroeconomic theory today is unimaginable without the ideas of this scientist. Minsky theory , largely , is the backbone of post-Keynesian economic thought.

• One of the fundamental ideas for Minsky, the proof of which he devoted his entire life, is that the capitalist economy - internal instability mechanism and by itself it does not lead to any equilibrium. Cyclical fluctuations in unemployment, which is replaced by an overheating economy - this is what best describes the economic dynamics of capitalism.

• The main concept of Minsky , with which he tried to prove the failure of the market as a mechanism for the coordination of economic activity is " financial instability hypothesis " . According to scientists, the reason for instability of modern capitalism to be found in its financial system.

MINSKY MOMENT• When a market fails or falls into crisis after an

extended period of market speculation or unsustainable growth. A Minsky moment is based on the idea that periods of speculation, if they last long enough, will eventually lead to crises; the longer speculation occurs the worse the crisis will be. This crisis is named after Hyman Minsky, for arguing the inherent instability of markets, especially bull markets. He felt that long bull markets only ended in large collapses.

References :

• http://www.investopedia.com/terms/m/minskymoment.asp 

• http://gallery.economicus.ru/cgi-bin/frame_rightn.pl?type=in&links=./in/minsky/biogr/minsky_b1.txt&name=minsky&img=brief.gif

• www.wikipedia.org• http://www.youtube.com/watch?v=gRE-IDYfi8Y