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Definition

This is a theory put forward by Hyman Minsky which postulates that modern economies can reach a point where excessive bullishness predominates and is ultimately overtaken by a return to reality. The moment when investors realise that the upward path is unsustainable has become known as a "Minsky moment" and is associated with a sharp downturn in markets. Minsky lived though the Great depression of the 1930's and was a post-Keynesian economist.

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