Innovation and the Global Financial Crisis: Consequences of Incompetence

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Sammanfattning

The paper explores the development of a radical financial innovation, securitization. This innovation changed the context for all actors in the financial industry repeatedly to such a degree that even the highest regarded experts repeatedly made prediction errors. The negative effects of prediction errors have since 1980 gradually became larger until today when even a single individual decision by a portfolio manager may risk global financial mayhem. The conclusion is that financial innovation has become a lot riskier than is commonly appreciated in economic theory and practice. Our limited ability to foresee the consequences of our actions are fundamental to innovation and product development. Unintended and undesired outcomes should be acknowledged as an untapped resource for improving the net effects of innovation.
OriginalspråkEngelska
Titel på värdpublikationThe Proceedings of The Innovation for Financial Services Summit : Luxembourg, Grand-Duchy of Luxembourg - 21-23 September 2011
UtgivningsortLuxembourg
FörlagPublic Research Centre Henri Tudor
Utgivningsdatum21.09.2011
ISBN (tryckt)2-919941-14-3
ISBN (elektroniskt)9782919941148
StatusPublicerad - 21.09.2011
MoE-publikationstypA4 Artikel i en konferenspublikation
EvenemangThe Innovation for Financial Services Summit - Luxembourg, Luxemburg
Varaktighet: 21.09.201123.09.2011

Nyckelord

  • 511 Nationalekonomi
  • 512 Företagsekonomi
  • KOTA2011

Styrkeområden och områden med hög potential (AoS och AoHP)

  • AoS: Ansvarsfull organisering

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