For instance, in Manias, Panics, and Crashes by Charles P. Kindleberger we find the Minsky Model: (1) Displacement—some exogenous event (war, crop failure, etc.) shocks the macroeconomic system. (2) Opportunities—the displacement creates profitable opportunities in some sectors of the economy and closes down other sectors. Investment and production focuses on the profitable sectors and a boom is underway. (3) Credit expansion—an expansion of credit feeds the boom. (4) Euphoria—speculation for price increases couples with investment for production/sale.2
