Artificial Stability and the Return of Systemic Fragility: A Management, Financial and Accounting Perspective from the 2008 Crisis to the Post-COVID Global Economy

Abstract

For more than a decade following the 2008 global financial crisis, the world economy has experienced an unusually prolonged period of apparent stability, characterized by low unemployment, sustained economic growth, and record-high financial markets. Classical indicators suggest that an inverted yield curve should have already signaled a recession, yet no conventional downturn has occurred. This article examines the structural reasons behind this anomaly through Hyman Minsky’s Financial Instability Hypothesis, the legacy of the 2008 crisis, the unprecedented post-COVID monetary and fiscal expansion, and the proliferation of zombie firms, high debt levels, and asset bubbles. We argue that the current stability is artificial and fragile, and that delaying the necessary adjustment will likely lead to a more severe and disruptive eventual correction. Understanding these dynamics is critical for anticipating future systemic risks.