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Longrunonomics vs. Shortrunonomics

Harvard Business Review

Behavioral finance stayed on the margins. I think this analysis is largely right, although the savings and loan mess can better be described as the product of excessive financial regulation (interest rate caps, and various rules that kept the S&Ls from diversifying their portfolios) followed by lamebrained deregulation.

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Is Economics Ready for a New Model?

Harvard Business Review

and Europe, though (and Japan's long struggles were seen as the product of peculiarly Japanese economic traits). You can find lots of scholars at top economics departments who study why bubbles and crashes happen, and how psychology and genetics shape individual decisionmaking. None of them brought economic devastation in the U.S.