The End of Rational and Magic Finance: The Minsky Momen
BOHR International Journal of Finance and Market Research, 1 (1):
1-6 (July 2021)DOI: 10.54646/BIJFMR.001
Abstract
If I may be allowed to appropriate the term speculation for the activity of forecasting the psychology of the market, and the term enterprise for the activity of forecasting the prospective yield of assets over their whole life, it is by no means always the case that speculation predominates over enterprise. As the organisation of investment markets improves, the risk of the predominance of speculation does, however, increase Speculators may do no harm as bubbles on a steady stream of enterprise.