Gleaning The Wrong Lesson From Minsky

Minsky has been mentioned quite frequently over the past year on blogs and then the mainstream media (and now, apparently, in political circles), in my mind, because of his insights about the importance of the credit cycle to the economy. That immediately leads to exploring the causes of the credit cycle, and questioning how to ameliorate them.

But Norris and many in government apparently now are reading Minsky a bit differently, and the lessons they are gleaning from Minsky deeply concern me.