A behavioral finance approach to international monetary and financial analysis : implications and evidence / Thomas D. Willett

Format:

Book

Author/Creator:

Willett, Thomas D., author.

Series:

Cambridge elements. Cambridge elements in international economics

Cambridge elements. Cambridge elements in international economics, 2753-9326

Language:

English

Subjects (All):

Finance--Psychological aspects.

Finance.

International finance.

Physical Description:

1 online resource

Place of Publication:

Cambridge : Cambridge University Press, 2026

Summary:

"Efficient market theory has made an important contribution to economic and financial analysis, but markets do not always behave according to the theory's predictions. The behavioral finance approach advocated in this Element is a complement to efficient market theory. The Element stresses the effects of perverse incentives, complexity, and uncertainty, as well as the roles of mental models or narrative and behavioral biases. It emphasizes limits to arbitrage, suggesting that international capital mobility is often far from perfect. It reviews popular models and considers alternatives in areas such as currency crises, exchange rates and the balance of payments, the international monetary trilemma, capital flow surges and sudden stops, and the discipline effects of international financial markets. The behavioral approach of the Element also helps to explain why governments often fail to undertake necessary policy adjustments in time to head off currency and financial crises"-- Cambridge Core

Contents:

Behavioral finance and efficient market theory

Major impediments to financial sector efficiency

Examples of faulty mental models contributing to major crises

Some examples of the interactions among biases

Some applications to international monetary and financial questions

The nature of the capital flow assumptions in the major open economy macro models

Notes:

Includes bibliographical references

Online resource; title from PDF title page (Cambridge Core, viewed May 26, 2026)

Other Format:

Print version: Willett, Thomas D. Behavioral finance approach to international monetary and financial analysis

ISBN:

9781009694001

1009694006

9781009694025

1009694022

OCLC:

1582438757

Publisher Number:

CIPO000359539

CIPO000381789

Access Restriction:

Restricted for use by site license