CBRC’s Andrew Sheng talks about new era for policymaking

Theory failure

andrew-sheng2

You have been saying of late that theory has failed you. What do you mean by that?

It is becoming increasingly clear that a lot of our micro and macro assumptions have turned out to be wrong. The most important problem is that a lot of our models have limiting assumptions that state that the market reverts to equilibrium. The theory is that negative feedback will propel the market back towards equilibrium. But, as we now know, the market actually has positive feedback.
With other failures of

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: