Evidence from Nigeria shows that access to finance can help households reduce the impact of bad luck, reducing the fall in consumption that they suffer. * Yesterday I was part of a group discussing a draft research paper on the ethics of banking, prepared for the Cambridge Judge Business School Centre for Compliance and Trust. I… Continue Reading
Tag Archives: households
Still debating the causes of the world financial crisis
Major world historical events such as the financial crisis that swept much of the world in 2007-09 typically have multiple causes. In 2014 there was an outpouring of new books about the causes of the First World War which started a century before. Historians continue to disagree about why the nations of Europe went to… Continue Reading
The central importance of housing to the British financial system
In Britain we seem to have a love affair with the property market. Home ownership is 69%, not especially high, but average house prices are a constant topic of discussion, mainly because property in the prosperous south east of the UK (including Cambridge) is very expensive. The latest Bank of England Financial Stability Report shows… Continue Reading
The basic microeconomics of finance
Introduction Conventional finance theory is based on the microeconomic theory of consumer choice under uncertainty. This is a long established theory with some serious weaknesses. On the MFin we have a core course called “Economic foundations of finance” which shows where finance theory comes from and, in passing, should make students a bit more cautious… Continue Reading