Crisis of Beliefs - Investor Psychology and Financial Fragility

The collapse of Lehman Brothers in September 2008 caught markets and regulators by surprise. Nicola Gennaioli and Andrei Shleifer walk readers through the unraveling of Lehman and the ensuing meltdown of the US financial system, and present new evidence to illustrate the destabilizing role played by the beliefs of home buyers, investors, and regulators. Using the latest research in psychology and behavioral economics, they present a new theory of belief formation that explains why the financial crisis came as such a shock to so many people--and how financial and economic instability persist. A Crisis of Beliefs is a must-read for anyone seeking to navigate today's unpredictable financial waters.

About the author

Nicola Gennaioli is professor of finance at Bocconi University in Italy. Andrei Shleifer is professor of economics at Harvard University. His books include Inefficient Markets: An Introduction to Behavioral Finance.

Summary

How beliefs shape financial markets and expose the economy to major risksThe collapse of Lehman Brothers in September 2008 caught markets and regulators by surprise. Nicola Gennaioli and Andrei Shleifer walk readers through the unraveling of Lehman and the ensuing meltdown of the US financial system, and present new evidence to illustrate the d

Foreword

How investor expectations move markets and the economy

Additional text

"One of Barron's Book Picks from Industry Leaders in 2018 (Robert Shiller)"

Product details

• Authors: Nicola Gennaioli, Nicola Shleifer Gennaioli, Andrei Shleifer, Shleifer Andrei
• Publisher: Princeton University Press
• Languages: English
• Product format: Paperback / Softback
• Released: 31.03.2020
• EAN: 9780691202235
• ISBN: 978-0-691-20223-5
• No. of pages: 264
• Subjects: Social sciences, law, business > Business > Individual industrial sectors, branches; Economics, BUSINESS & ECONOMICS / Business Ethics, BUSINESS & ECONOMICS / Economic History, BUSINESS & ECONOMICS / Economics / Theory, BUSINESS & ECONOMICS / Corporate & Business History, BUSINESS & ECONOMICS / Banks & Banking, BUSINESS & ECONOMICS / Government & Business