Can social science’s understanding of how humans think and act be used to predict how markets will behave?
Nudging is often a cost-effective approach to public policy.
Eugene F. Fama and Richard H. Thaler discuss whether markets are prone to bubbles.
John Maynard Keynes is remembered for his view that governments should spend money in recessions to regain full employment, an argument made famous in his 1936 book The General Theory of Employment, Interest, and Money. Few, however, realize that Keynes was a true forerunner of behavioral finance.