Thursday, 4 December 2008

Cass Sunstein on informational cascades

This article is from October, but germane to my discussion of fiscal salesmanship.

Cass Sunstein: Wall Street's Lemmings: Why policymakers need to understand psychology as much as economics to solve the financial crisis.

A couple of comments below the article point out that psychology is not the only cause of the financial crisis, but Sunstein is not claiming that. Undoubtedly it makes a big contribution and turning it around (he uses the example of Roosevelt, maybe the best fiscal salesman ever) is within the powers of politicians - Barack Obama of course being the one most capable of it, for many reasons.

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