characteristic of the three generations of models; 2. Models based on financial instability hypothesis, taking into account both the … dynamics of financial market as well as the role of uncertainty, interdependency and dynamic complexity. We present here Minsky …'s concept of financial instability and then analyse the content of some simplified models. …

the 'financial instability hypothesis' (FIH). We limit the analysis to the core of FIH-that is, to its strictly financial … alternative approach to account for the cyclical fluctuations of financial conditions that endogenously generate instability and …

scenarios according to the stability/instability of the isolated financial and real markets. For each of those frameworks we … increasing the degree of interaction between the two markets. In particular, we find that the instability of the real market … seems to have stronger destabilizing effects than the instability of the financial market: in fact, the former gets …

paper examines four such models of increasing complexity, including the affine nonlinear feedback H∞-control, to show that …