What We Are Reading Today: A Crisis of Beliefs: Investor Psychology and Financial Fragility

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Updated 17 March 2020

What We Are Reading Today: A Crisis of Beliefs: Investor Psychology and Financial Fragility

Authors: Nicola Gennaioli and Andrei Shleifer

The collapse of Lehman Brothers in September 2008 caught markets and regulators by surprise.
Nicola Gennaioli and Andrei Shleifer walk readers through the unraveling of Lehman and the ensuing meltdown of the US financial system, and present new evidence to illustrate the destabilizing role played by the beliefs of home buyers, investors, and regulators. Using the latest research in psychology and behavioral economics, they present a new theory of belief formation that explains why the financial crisis came as such a shock to so many people— and how financial and economic instability persist.
A Crisis of Beliefs is a must-read for anyone seeking to navigate today’s unpredictable financial waters.


What We Are Reading Today: Democratic Federalism

Updated 04 June 2020

What We Are Reading Today: Democratic Federalism

Authors: Robert Inman and Daniel L. Rubinfeld

Around the world, federalism has emerged as the system of choice for nascent republics and established nations alike. In this book, leading scholars and governmental advisers Robert Inman and Daniel Rubinfeld consider the most promising forms of federal governance and the most effective path to enacting federal policies. 

The result is an essential guide to federalism, its principles, its applications, and its potential to enhance democratic governance.

Drawing on the latest work from economics, political science, and law, Inman and Rubinfeld assess different models of federalism and their relative abilities to promote economic efficiency, encourage the participation of citizens, and protect individual liberties. Under the right conditions, the authors argue, a federal democracy—including a national legislature with locally elected representatives—can best achieve these goals. Because a stable union between the national and local governments is key, Inman and Rubinfeld also propose an innovative method for evaluating new federal laws and their possible impact on state and local governments. Finally, to show what the adoption of federalism can mean for citizens, the authors discuss the evolution of governance in the European Union and South Africa’s transition from apartheid to a multiracial democracy.

Interdisciplinary in approach, Democratic Federalism brims with applicable policy ideas and comparative case studies of global significance. This book is indispensable for understanding the importance of federal forms of government—both in recent history and, crucially, for future democracies.