David Tuckett of University College London to be Awarded a Grant from the Institute for New Economic Thinking
The Institute will fund Professor Tuckett’s project to develop a case for “emotional finance” in economics and finance theory.
New York, NY, December 04, 2010 --(PR.com)-- The Institute for New Economic Thinking (INET), launched with a $50 million pledge from George Soros to promote changes in economic theory and practice through research grants, Task Force groups, academic partnerships, and conferences, announced that it has selected David Tuckett of University College London to develop a case for emotional finance in economics and finance theory. The grant program, along with other INET initiatives, was created in direct response to arguably the worst economic crisis in world history, and has been designed to encourage and support new economic thinking. Starting in 2011, INET will conduct two grant cycles annually.
The concept of emotional finance is the product of Professor Tuckett’s past research. The project will use interviews with asset managers to develop further evidence for the role of emotion in everyday professional decision-making and then explore with selected UK regulators, pension funds and asset management groups ways to influence policy to reduce the potentially dangerous influence of the inherent emotional conflicts they face. It seeks to provide a new theoretical approach to the economics of financial markets based on interdisciplinary insights into the way financial assets intrinsically create highly consequential emotional conflicts for those trading them --- with major implications for market stability.
“The role of emotion has yet to be adequately incorporated into economics despite the intrinsic evidence of its influence,” said Dr. Robert Johnson, Executive Director of INET. “Professor Tuckett’s project will closely examine the role that uncertainty and emotion play in the decision-making and market stability. This project is an excellent example of how the economics profession can gain from the input of related disciplines by looking at the situation through a different lens.”
Professor Tuckett is a Visiting Professor in Psychoanalysis at University College London in the Division of Psychology and Language Sciences, as well as a Fellow of the Institute of Psychoanalysis in London. He has trained in Economics, Medical Sociology and Psychoanalysis and works part-time in clinical practice. Since winning a 2006 Leverhulme Research fellowship for a "psychoanalytic study of investment markets," Professor Tuckett has been collaborating with Professor Richard Taffler (University of Warwick School of Management) to introduce psychoanalytical understanding to behavior in the financial markets. His book Minding the Markets: An Emotional Finance View of Financial Instability will be published in New York and London by Palgrave Macmillan in June 2011.
“From an interdisciplinary perspective, economic theories of financial markets are quite unrealistic, however sophisticated they seem to appear. It is impossible for those who work in financial markets to know what their assets will be worth in a few years time. But they do trade stories, which are guesses about imagined futures that are always uncertain. Accepting such uncertainty makes all the difference. Financial assets are abstract, they can easily increase or decrease; they are very influential on the state of mind, excitement at gain or panic at loss. And these states of mind can change even if the underlying facts don’t change much. Once doubt is engaged, for example, reason falters – as in the current state of sovereign bond markets. For such reasons economics cannot continue to ignore uncertainty and emotion,” said David Tuckett, Visiting Professor at University College London. “I look forward to the opportunity I now have to collect further data in order to advance understanding of the matter, and to test the ways emotional states and story-telling are at the heart of financial decision-making. I also welcome the opportunity the grant provides to discuss with industry professionals and regulators about how, by understanding the ways emotion and belief interact in decision-making, they can make markets safer for themselves and everyone else.”
INET’s Inaugural Grant Program has been designed to harness the new economic thinking we recognize as crucial to effecting change. The program was launched this summer and received more than 500 applications from around the world and has selected 34 initiatives to be awarded grants totaling $7 million. INET's Grant Program will continue with two similar grant cycles annually, the next one commencing in the spring of 2011.
For further details regarding INET’s Grant Program or additional projects and people to be awarded grants please visit the Institute’s website.
About the Institute for New Economic Thinking:
Launched in October 2009 with a $50 million commitment from George Soros and driven by the global financial crisis, the Institute for New Economic Thinking (INET) is dedicated to empowering and supporting the next generation of economists and scholars in related fields through research grants, Task Force groups, academic partnerships, and conferences. INET embraces the professional responsibility to think beyond current paradigms. Ultimately, INET is committed to broadening and accelerating the development of innovative thinking that can lead to insights into and solutions for the great challenges of the 21st century and return economics to its core mission of guiding and protecting society. For more information please visit http://www.ineteconomics.org/
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The concept of emotional finance is the product of Professor Tuckett’s past research. The project will use interviews with asset managers to develop further evidence for the role of emotion in everyday professional decision-making and then explore with selected UK regulators, pension funds and asset management groups ways to influence policy to reduce the potentially dangerous influence of the inherent emotional conflicts they face. It seeks to provide a new theoretical approach to the economics of financial markets based on interdisciplinary insights into the way financial assets intrinsically create highly consequential emotional conflicts for those trading them --- with major implications for market stability.
“The role of emotion has yet to be adequately incorporated into economics despite the intrinsic evidence of its influence,” said Dr. Robert Johnson, Executive Director of INET. “Professor Tuckett’s project will closely examine the role that uncertainty and emotion play in the decision-making and market stability. This project is an excellent example of how the economics profession can gain from the input of related disciplines by looking at the situation through a different lens.”
Professor Tuckett is a Visiting Professor in Psychoanalysis at University College London in the Division of Psychology and Language Sciences, as well as a Fellow of the Institute of Psychoanalysis in London. He has trained in Economics, Medical Sociology and Psychoanalysis and works part-time in clinical practice. Since winning a 2006 Leverhulme Research fellowship for a "psychoanalytic study of investment markets," Professor Tuckett has been collaborating with Professor Richard Taffler (University of Warwick School of Management) to introduce psychoanalytical understanding to behavior in the financial markets. His book Minding the Markets: An Emotional Finance View of Financial Instability will be published in New York and London by Palgrave Macmillan in June 2011.
“From an interdisciplinary perspective, economic theories of financial markets are quite unrealistic, however sophisticated they seem to appear. It is impossible for those who work in financial markets to know what their assets will be worth in a few years time. But they do trade stories, which are guesses about imagined futures that are always uncertain. Accepting such uncertainty makes all the difference. Financial assets are abstract, they can easily increase or decrease; they are very influential on the state of mind, excitement at gain or panic at loss. And these states of mind can change even if the underlying facts don’t change much. Once doubt is engaged, for example, reason falters – as in the current state of sovereign bond markets. For such reasons economics cannot continue to ignore uncertainty and emotion,” said David Tuckett, Visiting Professor at University College London. “I look forward to the opportunity I now have to collect further data in order to advance understanding of the matter, and to test the ways emotional states and story-telling are at the heart of financial decision-making. I also welcome the opportunity the grant provides to discuss with industry professionals and regulators about how, by understanding the ways emotion and belief interact in decision-making, they can make markets safer for themselves and everyone else.”
INET’s Inaugural Grant Program has been designed to harness the new economic thinking we recognize as crucial to effecting change. The program was launched this summer and received more than 500 applications from around the world and has selected 34 initiatives to be awarded grants totaling $7 million. INET's Grant Program will continue with two similar grant cycles annually, the next one commencing in the spring of 2011.
For further details regarding INET’s Grant Program or additional projects and people to be awarded grants please visit the Institute’s website.
About the Institute for New Economic Thinking:
Launched in October 2009 with a $50 million commitment from George Soros and driven by the global financial crisis, the Institute for New Economic Thinking (INET) is dedicated to empowering and supporting the next generation of economists and scholars in related fields through research grants, Task Force groups, academic partnerships, and conferences. INET embraces the professional responsibility to think beyond current paradigms. Ultimately, INET is committed to broadening and accelerating the development of innovative thinking that can lead to insights into and solutions for the great challenges of the 21st century and return economics to its core mission of guiding and protecting society. For more information please visit http://www.ineteconomics.org/
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Bill Fallon
212 925 6900
ineteconomics.org
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