The Psychology of Financial Crises

• Authors: Henning Klodt
• Languages of publication: EN

Abstracts

EN

Traditional economic theory has tried to explain speculative bubbles as the result of rational economic behavior - and has failed. This calls for the integration of sociopsychological patterns, which allow capturing irrational behavior in economic analyses. The paper suggests four fundamental psychological pitfalls derived from the theory of cognitive dissonance, which might be at the roots of the present financial crisis and which should better not be ignored by monetary policy makers. (original abstract)

Keywords

EN

Financial crisis; Financial markets; Behavioral economics

PL

Kryzys finansowy; Rynki finansowe; Ekonomia behawioralna

• Publisher: Instytut Naukowo-Wydawniczy "SPATIUM"
• Journal: Central European Review of Economics & Finance
• Year: 2011
• Issue: Vol. 1, No 1
• Pages: 6-12

Contributors

author

Henning Klodt

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