How Conventional Wisdom Failed Us

The video discusses the financial crisis of 2008, highlighting regulatory failures and the influence of prevailing economic theories. It critiques the neoclassical economic approach and emphasizes overlooked insights from economists like Keynes and Hayek. The video argues that intellectual errors in economic thought contributed to the crisis, driven by an overreliance on mathematical models and conventional wisdom.

What were some specific failures in the regulatory structure that contributed to the financial crisis of 2008?

How did the conventional wisdom of economics prior to the crisis influence the decisions made by economists?

What role did behavioral finance insights play in the understanding of the financial crisis?

What intellectual errors were identified as contributing factors to the financial crisis?

In what ways did the ideas of past economists influence the actions of practical men during the financial crisis?