Unstable Economic System

An Unstable Economic System is an economic system that is an unstable system.

• Context:
  • It can presage a Failed Economy.
  • It can include a High Underemployment Rate (unemployment rate).
  • It can include a High Bankruptcy Rate (bankruptcy rate).
  • It can include a High Inflation Rate (inflation rate).
  • It can include a Stock Market Selloffs.
  • It can include Bank Runs.
• Example(s):
  • Global Economy in 1932.
  • U.S. Economy in 2008.
  • …
• Counter-Example(s):
  • a Stable Economy.
  • an Unstable Political System.
  • an Unstable Climatic System.
• See: Economic Depression, Market Failure, Free Market Cycle, Speculative Finance, High-Risk Lending.

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References

1986

• (Minsky, 1986) ⇒ Hyman P. Minsky. (1986). “Stabilizing An Unstable Economy." Yale University Press. ISBN:0300040008

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