The rise and rise of behavioural economics

Behavioural economics have become an ever more trendy way of explaining the crisis. It attempts to use cognitive and emotional factors to understand economic decisions by consumers, borrowers and investors. Critics argue that this emphasis on psychology naturalises economics, consigning economic decision-making to the sphere of flawed 'human nature'. In this fascinating debate a panel of top notch speakers demystify the subject and do battle on the merits of its approach and usefulness. The speakers are: Leigh Caldwell chief executive, Inon; Professor Emre Ozdenoren associate professor of economics, London Business School; Dr Stuart Derbyshire senior lecturer, School of Psychology, University of Birmingham and Dr Michael Savage investment banker and writer, financial economics and development.

Recommended links:

• Spiked article by Stuart Derbyshire: Shopping and the Stone Age brain
• Financial Times article by Robert Shiller: A failure to control the animal spirits
• Reuters article by Phil Wahba: Buffeted
• Knowledge@Wharton article: Hope, Greed and Fear: The Psychology behind the Financial Crisis