The hypothesis of financial instability: a development proposal

Abstract

In this paper, a review of Minsky's contributions is made for the construction of a theory that, following Keynes's expositions, allows us to explain the tendency of modern economies to instability. Next, a development proposal is incorporated into the hypothesis of financial instability (HFI) made by A. Vercelli, which allows to add to the three types of economic units considered by Minsky other three types of economic units, among which households appear , which expands the analytical possibilities of the HIF to explain the functioning of the economy and, particularly, the critical episode of 2007.