What does it mean in the context of the 1920s?
That doesnt mean that what happens is always good.
Before we can reform the financial system, we need to understand what the financial system does—or, better, what it do. To put it as simply as possible, Minsky always insisted that the proper role of the financial system is to promote the “capital development” of the economy. By this he did not simply mean that banks should finance investment in physical capital. Rather, he was concerned with creating a financial structure that would be conducive to economic development to improve living standards, broadly defined.
Briefly summarize the preparedness hypothesis.
As far as cardiovascular variables are concerned, it has repeatedly been found that blood pressure is higher in men and women during work than either after work or during equivalent times of day spent at leisure. These effects have been observed both with self-monitored blood pressure and with automated portable (or ambulatory) monitoring instruments. Blood pressure is especially high during periods of increased work demand (Rose and Fogg 1993). It has also been found that blood pressure rises with emotional demands, for example, in studies of paramedics attending the scenes of accidents. However, it is often difficult to determine whether blood pressure fluctuations at work are due to psychological demands or to associated physical activity and changes in posture. The raised blood pressure recorded at work is especially pronounced among people reporting high job strain according to the Demand-Control model (Schnall et al. 1990).