On the current account deficit, it now looks as though it has averaged around 5 per cent of GDP in 1998 rather than the 5½ per cent we expected at the last hearing. I would summarise the situation as being one where the forecast errors were within the normal ranges that occur with forecasts of this type.
In short, unusually long periods of economic stability lull investors into taking on more risk. This leads them to borrow excessively and to overpay for assets. A Minsky moment is the point in the cycle when investors have cash flow problems due to spiraling debt they have incurred in order to finance speculative investments.