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Journal Article

Of Laws, Lending, and Limbic Systems

William J. Bernstein
Financial Analysts Journal
Vol. 66, No. 1 (January/February 2010), pp. 17-22
Published by: CFA Institute
Stable URL: http://www.jstor.org/stable/27809158
Page Count: 6
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Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Of Laws, Lending, and Limbic Systems
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Abstract

Over the past four centuries, financial crises have occurred at semi-regular intervals of approximately once a decade. Their primary mechanism seems to be the increasingly elastic nature of credit in the modern financial system. Recent advances in neurophysiology and cognitive neuropsychology shed light on this phenomenon and provide hints about how such crises might be mitigated in the future.

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