The Influence of Past Experiences on Financial Decisions

Economists build models based on basic assumptions of human behavior. But people are complicated, right? Do Germans who grew up on opposite sides of the Berlin Wall make the same financial decisions today? Ulrike Malmendier is a behavioral economist whose innovative research has shown that experiential learning rewires the brain to make decisions based on past experiences. In this podcast, Malmendier and Journalist Rhoda Metcalfe discuss how behavioral economics is helping to build better economic models.

Transcript: https://bit.ly/3x3sWjZ

 Read New Lessons from Behavioral Economics at IMF.org/fandd