A pretty clear explanation of Hyman Minsky’s key ideas:
Most macroeconomists work with equilibrium models which assume the economy is fundamentally stable and that booms or crises are precipitated by external shocks “whether that be a rise in oil prices, a war or the invention of the internet”.
Minsky disagreed. He thought that the system itself could generate shocks through its own internal dynamics. He believed that during periods of economic stability, banks, firms and other economic agents become complacent.
They assume that the good times will keep on going and begin to take ever greater risks in pursuit of profit. So the seeds of the next crisis are sown in the good time.
Read more at BBC News – Did Hyman Minsky find the secret behind financial crashes?.