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The research problem is topical issue named by credit crunch to the business and economic life in the society. All the businesses as an economic activities have ups and downs. But the phenomenon is changing with the phases of time. As a result the previous economist frameworks are getting inadequate to explain the financial crisis. The researcher takes the Hyman P. Minsky's framework as a justification tool of the current credit crunch. The research problem viewed in different way from the different point of view. The research presents interest and rationale in the introduction why the researcher selected the title. In the literature review the main theme along with the different authorities' scholarly work has presented for the justification and support the validity of Minsky's framework and his hypothesis. The literature review also covers some critics as well with prove of invalidity of the criticism. The methodology has written after that. Without the actual feature and difficulties of credit crunch it is not possible to argue about any conceptual validation. The reality and reason behind credit crunch have presented in findings and analysis showing the match of Minsky predictions. The discussions also covers the introduced of Minsky framework to the financial instability in short term and long term of the capitalist economy. In the conclusions and recommendation the researcher tries to show the economic trend and suggests the poli-psychological positiveness and international division of responsibility to create a positive eco-system to the society.

Comparative Analysis of Hyman P. Minsk Hypothesis to Evaluate the Current Credit Crunch