Economics Minsky's Moment "Stable Economies Research Proposal

Total Length: 354 words ( 1 double-spaced pages)

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It is when the market reaches this point that the system begins to unravel. Once prices start to drop, borrowers start to default on their loans causing prices to fall even further (Buttonwood, 2009).

When this situation happens the Government must step in and take action. When the banking and finance sector hit crisis mode it causes deflationary destruction, because capital is essentially eliminated. Businesses, investors and consumers begin to lose confidence and borrowers find it hard to repay their lenders.

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When financial times are good, government revenues in the form of taxes on capital gains, bonuses, corporate profits and property sales tend to be strong. But as governments are now discovering, such revenues collapse very quickly when the bubble bursts and things fall apart (Buttonwood, 2009). The financial sector in this country plays a very important role and can make or break depending on the mode that it is in......

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"Economics Minsky's Moment Stable Economies" (2009, April 14) Retrieved May 21, 2025, from
https://www.aceyourpaper.com/essays/economics-minsky-moment-stable-economies-22961

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"Economics Minsky's Moment Stable Economies" 14 April 2009. Web.21 May. 2025. <
https://www.aceyourpaper.com/essays/economics-minsky-moment-stable-economies-22961>

Latest Chicago Format (16th edition)

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"Economics Minsky's Moment Stable Economies", 14 April 2009, Accessed.21 May. 2025,
https://www.aceyourpaper.com/essays/economics-minsky-moment-stable-economies-22961