Lessons From the Financial Crisis | Leeds on Finance

Lessons From the Financial Crisis | Leeds on Finance.

Chicago Federal Reserve Bank President Charles Evans gave a speech two weeks ago called, “Four Lessons From the Financial Crisis.”  The speech was given in New York, at the 20th Annual Hyman P. Minsky Conference.

Evans started by stating that “Minsky’s key insight was that times of economic quiescence can encourage behaviors that often lead to the next period of turbulence.”  The 23 years known as the “Great Moderation” was highlighted by less disciplined risk-management processes and “a myopic focus induced by compensation heavily weighted towards short-term performance.”

This entry was posted in Behavioral Finance, Bubbles. Bookmark the permalink.