Volatility, financial crises and Minsky’s hypothesis
Jon Danielsson, Marcela Valenzuela, Ilknur Zer02 October 2015 voxeu.org
Does low volatility in financial markets mean that another financial crisis is more likely? And should we be worried when everything is OK? This column presents the first empirical results that find a strong validation of Minsky’s hypothesis – obtained from 200 years of historical cross-sectiona