ABSTRACT
The issue of the Minsky moment appears related not simply to the Financial Instability Hypothesis (FIH), but to the search for a new paradigm which does not just encompass a false dichotomy already acknowledged and, at last, widely accepted: the independence between the real and financial sides of the economy. It also calls for the overcoming of other resistant dichotomy myths of conventional theorizing: that is, the separation between cycles and growth, giving rise to an illusory idea that there exists a stable equilibrium path that the economy may follow independent of cyclical vicissitudes. The sources of the change can be traced to profit opportunities open to financial innovators within a given set of institutions and rules, a drive to innovate financing practices by profit-seeking households, business and bankers and legislative and administrative interventions by governments and central bankers.
