e-journal

The role of defective mental models in generating the global financial crisis

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Purpose – The purpose of this paper is to stress the role that several defective theories or views of
the world played in generating the subprime financial crisis.
Design/methodology/approach – This is done by describing these views, showing that they were
widely held by relevant decision makers, and by analyzing the flaws in these views. A considerable
amount of literature is surveyed in the process.
Findings – It was found that these defective views did play a major role in generating the crisis.
Research limitations/implications – Implications of the analysis for future research are discussed.
Practical implications – Implications of the analysis for reform of private and public sector
financial policies are discussed.
Originality/value – While most of the arguments in the paper are not new, no paper of which the
author is aware pulls them together with the same emphasis on how faulty mental models interacted
with dangerous incentive structures to play a prime role in generating the crisis. The paper also
references a much wider range of literature on the crisis than any study of which the author is aware. The
paper should be of value to any one interested in the causes of the crisis and ways to make future crises
less likely.

Keywords Financial economics, International financial institutions, Decision making, Financial policy,Financial crisis, Mental models, Subprime, Defective theories, Future crisis

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Ketersediaan

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Informasi Detail

Judul Seri

Journal of Financial Economic Policy

No. Panggil

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Penerbit

: Emerald Group., 2012

Deskripsi Fisik

Journal of Financial Economic Policy Vol. 4 No. 1, 2012 pp. 41-57

Bahasa

English

ISBN/ISSN

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Klasifikasi

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Tipe Isi

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Tipe Media

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Tipe Pembawa

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Edisi

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Subjek

EKONOMI

Info Detail Spesifik

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Pernyataan Tanggungjawab

Asmawati/Syahrial

Versi lain/terkait

Lampiran Berkas

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