Discussion and Q&A: Instability in Financial Markets 5/5

The video explores the role of interconnectivity and size in financial systems, discussing models that assess these factors. It highlights the importance of understanding financial instability through the lens of debt, imperfect knowledge, and policy implications. Minsky's theory of financial fragility is examined, emphasizing the need to manage debt levels. The discussion concludes with a debate on regulatory measures, their challenges, and potential solutions to prevent financial crises.

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