Choiceology with Katy Milkman | S17 EP4
A Comedy of Economic Errors
Imagine you're cleaning out your grandmother's attic when you notice a floorboard that doesn't quite sit right. You pry it up—and find $10,000 hidden beneath it. It's a startling discovery, but also a window into another way of thinking about money. Your grandmother was likely part of a generation that lived through hard financial times—a depression, unemployment—and saved for a rainy day, even when times became good.
In this episode of Choiceology with Katy Milkman, we're looking at how major economic events impact us and influence how much risk we're comfortable taking.
Frank Ferrante shares the story of legendary comedian Groucho Marx and how Groucho fared during and after the stock market crash of 1929.
Next, Katy speaks with Ulrike Malmendier, the Cora Jane Flood Professor of Finance at UC Berkeley's Haas School of Business. Ulrike's research reveals how major economic events can reshape our instincts about risk in ways that can last a lifetime, long after the circumstances that caused them have changed.
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