Hyman Minsky's financial theory of investment rests on a bifurcation of an economy's price systems. On the one hand, there's the price system for goods and services. And inflation here is what central banks look to hold in check. But at the same time, there is a wholly separate price system for assets. And it's here where stability leads to asset price inflation, a build up in debt, instability, and, eventually, crisis.
Hyman Minsky: The two price system model of the economy
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.