A Crisis of Beliefs: Investor Psychology and Financial Fragility

Nicola Gennaioli and Andrei Shleifer

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

Hardcover

Price:: $18.95/£15.99
ISBN:
Published:: Mar 10, 2020
Pages:: 264
Size:: 5.25 x 8 in.
Illus:: 20 b/w illus.
Main_subject:: Economics & Finance

Paperback

Price:: $18.95/£15.99
ISBN:
Published:: Mar 10, 2020
Pages:: 264
Size:: 5.25 x 8 in.
Illus:: 20 b/w illus.
Main_subject:: Economics & Finance

ebook

Price:: $18.95/£15.99
ISBN:
Published:: Mar 10, 2020
Pages:: 264
Size:: 5.25 x 8 in.
Illus:: 20 b/w illus.
Main_subject:: Economics & Finance

Buy This

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.

Awards and Recognition

One of Bloomberg's Best Books of 2018 (Cass Sunstein)
One of Barron's Book Picks from Industry Leaders in 2018 (Robert Shiller)

Nicola Gennaioli is professor of finance at Bocconi University in Italy. Andrei Shleifer is professor of economics at Harvard University. His books include Inefficient Markets: An Introduction to Behavioral Finance.

"Remarkable."—Robert J. Shiller, New York Times

"Original, compelling and intriguing."—Cass R. Sunstein, Bloomberg Opinion

"This brilliant book builds on a psychological idea to offer both an alternative to rational expectations and an interpretation of the financial crisis. It will be a milestone in the history of behavioral economics."—Daniel Kahneman, winner of the 2002 Nobel Prize in economics, author of Thinking, Fast and Slow

"A brilliant new analysis of the root cause of financial meltdowns and credit cycles more generally: market participants' mistaken beliefs."—Janet Yellen, Distinguished Fellow in Residence, Brookings Institution, and former Chair of the Federal Reserve, 2014–2018

A Crisis of Beliefs

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