Economics mini-series Episode 2: Behavioural Or Rational?

Economics has a long history but one that is littered with failures to predict large influential events that impact the global economy. The Queen of England famously asked why economists could not have seen the Global Financial Crisis before it happened. Since the GFC, economics and alternative theories have been gaining wider publicity as a result of the consistent failures of the neo-classical theory to avert economic problems such as poverty, recessions and growing inequality. In this episode, Pete and Steve discuss some of the latest developments in economic theory which focus on the behavioural aspects of people. And so we think psychology, behaviour and personality all play a distinct role in our economic decisions and this also influences how we see markets. Reference Books 1. Robert Shiller - Narrative Economics 2. Rory Sutherland – Alchemy 3. Kahneman – Thinking Slow, Thinking Fast 4. Ergodicity Economics – Ole Peters Thanks for listening! Download a free chapter from our book ’Low Rates, High Returns’ www.lowrateshighreturns.com/podcast Pete Wargent www.petewargent.com/ www.linkedin.com/in/pete-wargent-37228322/ Stephen Moriarty twitter.com/SGM63