Crash Course on Hyman Minsky, L. Randall Wray

Crash Course on Hyman Minsky, L. Randall Wray

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The transcript discusses the evolution of the financial system from a stable post-war period to a fragile structure as predicted by economist Hyman Minsky. Minsky foresaw that stability would lead to risky financial innovations, increasing private sector debt, and eventual financial crises. Despite government and Federal Reserve interventions, these crises became more frequent and severe over time. The transcript highlights Minsky's accurate predictions and the concept of a 'Minsky moment,' emphasizing that the current financial crisis roots back to the 1950s, not the early 2000s.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What did Minsky predict about the financial system starting in the late 1950s?

An increase in risky financial innovations

A reduction in government intervention

A decrease in private sector debt

A stabilization of financial markets

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

According to Minsky, what effect does stability have on the financial system?

It reduces private sector debt

It encourages risk-taking and instability

It eliminates financial crises

It leads to increased regulation

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How did Minsky view government debt in relation to the financial sector?

As irrelevant to financial stability

As a safe asset for leveraging

As a cause of financial crises

As a destabilizing factor

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the first financial crisis that Minsky predicted, and how was it characterized?

The 1987 stock market crash, with a slow recovery

The 1966 crisis, with a quick recovery

The 1974 crisis, with a severe recession

The 1990 crisis, with no bank insolvencies

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the 'Minsky moment' often misunderstood as?

A brief period of financial stability

A government intervention strategy

A half-century of financial instability

A sudden financial crisis starting in 2002