You can now read 10 articles in a month for free on Read as much as you want anywhere and anytime for just 99¢.

The Boston Globe


Policy paper from the Federal Reserve Bank of Boston examines financial panics

The Federal Reserve Bank of Boston has issued a policy paper that’s a deep dive on financial panics -- from the psychological perspective.

The paper looks not just at standard economic explanations for panics like the one in 2008 but at the human traits that may drive them. To understand, writers Anat Bracha and Elke U. Weber suggest exploring “animal spirits,” an expression used by John Maynard Keynes in a 1936 book to describe the human emotions that he saw linked to consumer confidence.

Loading comments...

You have reached the limit of 10 free articles in a month

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week