1. Discuss the core concept of Hyman Minsky’s financial instability hypothesis.

In this context
explain the stages which lead a stable economy towards instability
2. Using a diagram, explain Minsky’s income debt relations.
3. Explain the role of government during economic crisis
4. Explain the role of government and the central bank in controlling a recession from spiralling
out. Why is inflation a threat
5. Causes of Great Depression
6. How government intervention helped to elevate the Great Depression (Diagram of AD,AS)
7. Explain using a diagram, How an active government intervention combated the great
depression.
8. In the context of Great Depression, Discuss the relevance of Hymen Minsky’s financial
instability hypothesis.
9. “Although a budget deficit can be dangerous in the long run, sometimes it is only essential in
the short run”. Explain/Evaluate the above statement.
10. Explain Currency Crisis and how it is quantified.
11. Using 3 generation model explain the reasons behind currency crisis.
12. Explain using a first generation crisis model why a fixed exchange regime will always
collapse.
13. Using 2nd Generation crisis model, why a fixed exchange regime will always collapse.
14. According to 2nd Generation model, raising the domestic interest rate would worsen the
crisis situation, what alternative measure does this measure suggest.
15. Explain the Impossible Trinity/Trilemma.