-3
$\begingroup$

Is there any good idea that combines low volatility, risk aversion level of investors and prediction of financial crash ? Is there any literature?

$\endgroup$
  • $\begingroup$ Your question does not seem clear to me. What exactly are you interested in? $\endgroup$ – muffin1974 Mar 1 '16 at 8:19
2
$\begingroup$

The most applicable framework is Hyman Minsky's Financial Instability Hypothesis available as a paper at levyinstitute.org . That author also has at least two excellent books on the subject. Briefly, stability is destabilizing because it encourages leverage that makes the system increasingly fragile.

$\endgroup$

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.