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part--could be walled off from much of economics.
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So here at Yale we've never taught finance that way.
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We've always taught it as a part of economics and the crisis
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recently, I think, has made it clear that
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that's probably the way one should really think about the problem.
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So it's become very fashionable now to say that financial
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theorists had everything all wrong and to ask how it is that
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they got everything all wrong.
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Why didn't they anticipate the crash?
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And the two standard critiques of standard financial economics
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are a) it didn't allow for psychology,
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and you'll hear about that from Shiller next semester,