The aim of this paper is to describe the financial vulnerability of corporate sector by means of a simple Lotka-Volterra model. This should allow us to soften Lavoie's criticism of Minsky's 'Financial Instability Hypothesis' which is based on the so called «paradox of debt»

This paper analyses financial crises from a theoretical point of view. For this it reviews what different schools of economic thought have to say about financial crises. It examines first the approaches that regard financial crises as a disturbing factor of a generally stable real economy...