Crash Course on Hyman Minsky, L. Randall Wray

The transcript discusses the evolution of the financial system from a stable post-war period to a fragile structure as predicted by economist Hyman Minsky. Minsky foresaw that stability would lead to risky financial innovations, increasing private sector debt, and eventual financial crises. Despite government and Federal Reserve interventions, these crises became more frequent and severe over time. The transcript highlights Minsky's accurate predictions and the concept of a 'Minsky moment,' emphasizing that the current financial crisis roots back to the 1950s, not the early 2000s.

What did Minsky predict about the financial system starting in the late 1950s?

• An increase in risky financial innovations

• A reduction in government intervention

• A decrease in private sector debt

• A stabilization of financial markets

According to Minsky, what effect does stability have on the financial system?

• It reduces private sector debt

• It encourages risk-taking and instability

• It eliminates financial crises

• It leads to increased regulation

How did Minsky view government debt in relation to the financial sector?

• As irrelevant to financial stability

• As a safe asset for leveraging

• As a cause of financial crises

• As a destabilizing factor

What was the first financial crisis that Minsky predicted, and how was it characterized?

• The 1987 stock market crash, with a slow recovery

• The 1966 crisis, with a quick recovery

• The 1974 crisis, with a severe recession

• The 1990 crisis, with no bank insolvencies

What is the 'Minsky moment' often misunderstood as?

• A brief period of financial stability

• A government intervention strategy

• A half-century of financial instability

• A sudden financial crisis starting in 2002