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Understanding Financial Crashes Throughout History
The chapter explores the causes and consequences of major financial crashes, from the Great Crash of 1929 to the Dotcom bubble burst and the impact on economies. It discusses the importance of learning from past mistakes to avoid future crashes, emphasizing the human tendency to participate in risky financial systems. The conversation delves into policymakers' roles in restoring credibility and stability after financial crises, drawing insights from historical events like the Great Depression and the dot-com crash.