Description How Investor expectations move markets and the economy The collapse of Lehman Brothers in September 2008 caught markets and regulators by surprise.
He lives in Newton, Massachusetts..
His books include Inefficient Markets: An Introduction to Behavioral Finance and The Grabbing Hand: Government Pathologies and Their Cures.
Andrei Shleifer is professor of economics at Harvard University.
He lives in Milan.
About the Author Nicola Gennaioli is professor of finance at Bocconi University in Italy.
A must-read for anyone seeking insights into Financial markets, A Crisis of Beliefs shows how even the smartest market participants and regulators did not fully appreciate the extent of economic risk, and offers a new framework for understanding today\'s unpredictable Financial waters.
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.
Nicola Gennaioli and Andrei Shleifer carefully walk readers through the unraveling of Lehman Brothers and the ensuing meltdown of the US Financial system, and then present new evidence to illustrate the destabilizing role played by the beliefs of home buyers, investors, and regulators.
In this authoritative and comprehensive book, two of today\'s most insightful economists reveal how our beliefs shape Financial markets, lead to expansions of credit and leverage, and expose the economy to major risks.
A Crisis of Beliefs makes us rethink the Financial Crisis and the nature of economic risk.
Although the government rushed to rescue other Financial institutions from a similar fate after Lehman, it could not prevent the deepest recession in postwar history.
Description How Investor expectations move markets and the economy The collapse of Lehman Brothers in September 2008 caught markets and regulators by surprise
