The McNamara fallacy in financial policymaking

1 June 2018

One of the puzzling things about post-crisis financial policymaking is the dual understanding that we missed the excessive build-up of risk before 2007 in spite of having all the numbers right in front of us and at the same time founding the new world order on numbers and measurements. Have the policymakers fallen for the McNamara fallacy?

© All rights reserved, Jon Danielsson, 2019