FINANCIAL WORLD

Shiller on Corona-Panic – Better to shut down financial markets?

The Corona crisis has led to panic in the financial markets. Asset prices in some cases fell even lower than at the time of the financial crisis in 2008, which is why Nobel Prize winner Robert Shiller says that one should also think about temporarily suspending the markets.

BY

THORE BECKMANN

PUBLISHED

19. MARCH 2020

How should one deal with unplanned “Black_Swan-Events” on the financial markets? Robert Shiller has been studying the behaviour of private and institutional investors for a long time and comes to surprising conclusions.

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More than a decade after the financial crisis there still seems to be something seriously wrong with the financial system. Financial markets still tend to periodically misprice risk and contribute to boom and bust cycles. A better financial system needs to discourage short-termism and speculative activity, curtail systemic risk and distribute wealth more broadly.

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