RBA wakes up to the Minsky cycle theory

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by Chris Becker

Has the RBA woken up to Minsky’s financial instability hypothesis and other theorems about how a post-financial economy really works?

As the Australian economy tips over the mining capital expenditure cliff and into the great unknown, the RBA is pushing the non mining sector to start investing. This is not a sign of confidence, unless your name is Mad Adam, but a signal to those of us who understand Minsky that trouble lies straight ahead.

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