In the last lecture, we discussed how the Great Depression can tell us a lot about the recession we’re experiencing now. In this lesson, we’re going to dig deeper into what makes a credit boom happen.
To do this, we’re going to look at the work of two great economists: Charles Kindleberger and Hyman Minsky. Both recognised the human propensity to panic, to behave as though we were part of a herd and believe our own propaganda. More importantly, they realised how important these tendencies are to the shaping of economies.
We begin with Kindleberger and his distinction between ‘momentum’ and ‘value’ investors.
Upon purchase of this module you will receive access to a comprehensive set of lecture notes and two lecture vidoes.