Stability, fragility, and then, suddenly, a crisis. That’s the fate that Hyman Minsky, a former economics professor at Washington University in St. Louis, warned in 1986 could be coming for economies that take on too much risky debt and allow speculative market bubbles to form. Decades later, with global debts touching a record $300 trillion and stocks rising in the face of stubborn inflation and banking instability, Allianz chief economist Ludovic Subran is worried Minsky’s prediction is about to come true.
“We have all the ingredients of a so-called Minsky moment,” he told Bloomberg Monday.
