Mr. Minsky long argued markets were crisis prone. His moment has arrived." -The Wall Street Journal In his seminal work Minsky presents his groundbreaking financial theory of investment one that is startlingly relevant today. He explains why the American economy has experienced periods of debilitating inflation rising unemployment & marked slowdowns-and why the economy is now undergoing a credit crisis that he foresaw. Stabilizing an Unstable Economy covers: The natural inclination of complex capitalist economies toward instability Booms & busts as unavoidable results of high-risk lending practices " Speculative finance" & its effect on investment & asset prices Governments role in bolstering consumption during times of high unemployment The need to increase Federal Reserve oversight of banks Henry Kaufman president Henry Kaufman & Company Inc. places Minskys prescient ideas in the context of todays financial markets & institutions in a fascinating new preface. Two of Minskys colleagues Dimitri B. Papadimitriou Ph.D. & president The Levy Economics Institute of Bard College & L. Randall Wray Ph.D. & a senior scholar at the Institute also weigh in on Minskys present relevance in todays economic scene in a new introduction. A surge of interest in & respect for Hyman Minskys ideas pervades Wall Street as top economic thinkers & financial writers have started using the phrase " Minsky moment" to describe Americas turbulent economy. There has never been a more appropriate time to read this classic of economic theory."