3.1 A psychological perspective on the global financial crisis
In the following video, Professor Mark Fenton-O’Creevy discusses the potential ways in which someone might attempt to make sense of the global financial crisis from a psychological perspective.
Spend some time watching the video, and then try to summarise what you think the defining features of a psychological approach might be in the text box below.
As discussed in the video, a psychological approach to making sense of the global financial crisis might explore how the emotions and motivations of individual traders may have enhanced their propensity to engage in risky behaviour. Psychologists might attempt to examine the extent to which professional traders are able to overcome the biases and errors of thinking that generally afflict members of the wider population.