Financial Theories

Financial intermediation is a crucial component of any modern economy. Financial intermediaries, such as banks, investment funds, and insurance companies, facilitate the flow of capital between savers and borrowers. However, while these intermediaries serve essential functions, I’ve often wondered whether the true value they add to the economy is as straightforward as it appears. This […]

When I think about the process of making financial decisions, I realize it’s not just about numbers or predictions—there’s a lot more to it. It involves our past experiences, the context we’re in, and the way we retrieve information from our memories. This brings me to the idea of a retrieved-context theory of financial decisions.

The theory of financial intermediation holds a central place in the study of finance and economics. It seeks to explain the role that financial intermediaries—such as banks, insurance companies, and investment funds—play in connecting borrowers and lenders in the economy. While this theory has been instrumental in understanding the mechanisms behind the financial system, I

When I first started diving into financial intermediation, I quickly realized how much it influences the flow of capital in any economy. Financial intermediaries, such as banks, investment funds, and insurance companies, play an essential role in facilitating transactions between savers and borrowers. Their role in mitigating risks, providing liquidity, and ensuring that funds are

When I first came across Hyman Minsky’s theory of financial instability, it was a revelation. His insights into the inherent instability of financial markets and the role of debt in economic fluctuations felt strikingly relevant. In this article, I aim to break down Minsky’s ideas, explore their implications, and examine how his theory helps us

The 2008 financial crisis was one of the most significant economic events of the 21st century. It reshaped global economies, wiped out trillions of dollars in wealth, and left millions of people unemployed. While the mainstream narrative blames a combination of subprime mortgages, excessive risk-taking by banks, and regulatory failures, there are those who believe

As someone who has spent years studying financial markets and economic theories, I find the 2007 financial crisis to be one of the most fascinating and complex events in modern economic history. The crisis, which led to the Great Recession, has been analyzed from countless angles. However, one perspective that has gained traction in recent