Dive into 'A Crisis of Beliefs,' a groundbreaking book that explores the critical role of beliefs in shaping financial markets and exposing the economy to serious risks. Written by renowned economists Nicola Gennaioli and Andrei Shleifer, this insight-filled trade paperback unveils how fundamental misconceptions can lead to catastrophic outcomes in economic systems. In light of the unexpected collapse of Lehman Brothers in September 2008, this important work walks you through the intricate dynamics of belief and behavior in financial markets, emphasizing the unforeseen impact of home buyers', investors', and regulators' perceptions on market stability. Combining cutting-edge research in psychology and behavioral economics, the authors propose an innovative theory of belief formation that sheds light on why certain financial crises can catch even industry experts off guard. This compelling read is essential for anyone looking to better understand the variability and unpredictability of today’s financial landscape. Published by Princeton University Press in 2020, 'A Crisis of Beliefs' is brand new and offers a contemporary perspective on the deeply interconnected nature of belief systems and economic stability. Note: Shipping for this item is free. Please allow up to 6 weeks for delivery. Once your order is placed, it cannot be cancelled.

Note: Shipping for this item is free. Please allow up to 6 weeks for delivery. Once your order is placed, it cannot be cancelled.

Condition: BRAND NEW
ISBN: 9780691202235
Format: Trade paperback (US)
Year: 2020
Publisher: Princeton University Press


Description:


How beliefs shape financial markets and expose the economy to major risks

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.