Addressing the Psychology of Financial Markets

Article

Professor Tuckett suggests the key to understanding financial markets is the co-evolution of human nature and financial institutions. He explains the role of stories centred on 'phantastic objects' and groupthink in helping to create asset price bubbles. He concludes that measures to prevent bubbles in the future will be ineffective if they do not include a collective re-examination of the ways savings are managed and a deeper understanding of the emotional nature of the situation financial markets make us all confront.

Professor Tuckett suggests the key to understanding financial markets is the co-evolution of human nature and financial institutions. He explains the role of stories centred on 'phantastic objects' and groupthink in helping to create asset price bubbles. He concludes that measures to prevent bubbles in the future will be ineffective if they do not include a collective re-examination of the ways savings are managed and a deeper understanding of the emotional nature of the situation financial markets make us all confront.

Related items

  1. Adults standing in a circle and talking to each other about their mental wellbeing. There is a staff member sitting to the left of them in the frame sitting next to a table. The community centre is located in Seaton Deleval in the North East of England.

    What is the left for?: The case for a politics of reciprocism

    Liberal democratic capitalism has failed to give many people good lives, and the future looks less promising than the past. 

  2. Wildfires and climate change | Dave Hawkey from IPPR Scotland speaks to Lewis Goodall on LBC

    Europe’s heatwaves and the wildfires in the Cairngorms are a stark reminder that climate extremes are here.  The Scottish government must act now with a clear plan to prepare for what's coming.

  3. “I feel quite unsettled and unsafe”: Young people, belonging, and the broken promise of childhood

    Young people in England feel less secure, supported and connected than a decade ago. Based on nearly 200 conversations, this blog explores why childhood feels more stressful and less joyful.