4 Behaviour of Individuals and Crises
Towards a New Paradigm in Finance?
Pascal Barneto
All financial crises recorded throughout history (1929, 1987, 2008, etc.) have one thing in common: they allow financial authorities to quickly take resolutions and/or measures to restore confidence in the system, to at most appear to constitute a paradigm shift or a change in the economic model. Yet the origin of the mistrust in the system is scarcely taken into account. It is in many cases based on a lack of information relayed by rumour phenomena, individual or collective beliefs and often erroneous mental patterns of representation. As a result of contagion and mimetic behaviour of individuals, a wind of panic and widespread fear immediately follows, ...
Get Economic Transition and International Business now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
