The Global Financial Crisis and Its Aftermath: Hidden Factors in the Meltdown
A.G. Malliaris, Leslie Shaw, and Hersh Shefrin
Abstract
It is the intention of the 21 contributions in this book to argue that the complexity of the global financial crisis challenges researchers to offer comprehensive explanations by extending the scope and range of their traditional investigations. The volume is unique in viewing the financial crisis simultaneously through three different lenses—economic, psychological, and social values. In this respect, what also sets it apart is the discussion of what has gotten overlooked in the debates about the crisis, and how narrow framing has impacted social discourse about financial instability. This bo ... More
It is the intention of the 21 contributions in this book to argue that the complexity of the global financial crisis challenges researchers to offer comprehensive explanations by extending the scope and range of their traditional investigations. The volume is unique in viewing the financial crisis simultaneously through three different lenses—economic, psychological, and social values. In this respect, what also sets it apart is the discussion of what has gotten overlooked in the debates about the crisis, and how narrow framing has impacted social discourse about financial instability. This book goes beyond the initial criticisms of orthodox economic theories by offering a constructive methodology that is suitable for exploring financial crises. The authors recognize how current economic analysis did not prepare academic economists, business economists, traders, and regulators to anticipate economic and financial crises. So, the book searches more extensively within the broader discipline of economics for ideas related to crises but neglected perhaps because they were not mathematically rigorous. The primary example is the contributions of Hyman Minsky. The book first reviews how the crisis is viewed by the standards of orthodox economic analysis, despite its shortcomings. Second, it examines Minskyan economics, which is expanded to introduce ideas from psychology which form the basis of behavioral economics. Third, the volume emphasizes the role of ideas and values in economics, and views the crisis from this dimension.
Keywords:
global financial crisis,
Minsky,
asset bubbles,
behavioral economics,
psychology,
values
Bibliographic Information
Print publication date: 2016 |
Print ISBN-13: 9780199386222 |
Published to Oxford Scholarship Online: January 2017 |
DOI:10.1093/acprof:oso/9780199386222.001.0001 |
Authors
Affiliations are at time of print publication.
A.G. Malliaris, editor
Walter F. Mullady Sr. Chair in Business Administration and Professor of Economics and Finance, Loyola University, Chicago
Leslie Shaw, editor
Chicago Psychoanalytic Society
Hersh Shefrin, editor
Mario L. Belotti Chair in Finance, Leavey School of Business, Santa Clara University, California
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