What We’ve Learned From The Financial Crisis

What We’ve Learned From The Financial Crisis

There’s been a general lowering of confidence in the efficiency of markets. At the academic level, three shifts in thinking stand out: (1) Macroeconomists are realising that it was a mistake to pay so little attention to finance. (2) Financial economists are wrestling with some of the broader consequences of market misbehaviour (3) The principal-agent model is no longer presumed to work so well in the corporate world