Why has Minsky’s economic theory been ignored?

Abstract Hyman Minsky stands as one of the most influential economists of the twentieth century. His contributions to macroeconomic theory are primarily situated within the post-Keynesian tradition. This paper provides a concise overview of the fundamental elements of Minsky’s theoretical framework, focusing on his principal insights, the financial instability hypothesis, and its broader implications. Although Minsky developed his theory predominantly during the 1980s, it remained largely overlooked until the emergence of the global financial crisis in 2008. The present study seeks to evaluate the socioeconomic conditions and prevailing perceptions during the intervening period that contributed to the marginalisation and underappreciation of Minsky’s approach and policy recommendations. In so doing, the paper critically analyses several potential explanations for the relative neglect of his theoretical contributions.