BEHAVIOURAL FINANCE Literature review Example | Topics and Well Written Essays - 3000 words

BEHAVIOURAL FINANCE - Literature review Example Thus, there is a need for a new economic paradigm that can enhance the economic condition of all countries. The literature lays stress upon different views of the scholars and researchers related to the current topic. It is observed that few of these scholars are in favour of the idea, whereas others have directly opposed the same. Presently, there is a great need for change as individuals perceive that economic, social and environmental shifts are necessary. The global population is increasing at an alarming rate accompanied by an extraordinary improvement in life expectancy worldwide. Innovations made in the technological industry have enabled the people to learn and communicate essential information on a global level. The inequality between poor and rich countries has continued to grow with the passage of time. The demand for natural resources has increased and climate changes are more frequent than ever. The main issue related to the world economy is the most severe one. Apart from the abovementioned difficulties, the economic paradigm is also questioned as the world economy is heading towards a decline (Reza, 1999). The economic condition worsened as the blame game persisted so as to identify the one responsible for the economic downturn and recession. Primarily, the blame was put on the financial managers who had failed to identify and manage risk appropriately and even the regulators did not stop them from undertaking any fraudulent activity. The economic strategy devised for promoting growth was inadequate. Businesses and governments had stated the need for a new economic paradigm, which can facilitate sustenance of the environment. New Economics Movement had rapidly grown over the past few years. New Economics Foundation and The Other Economic Summit formed a part of the movement. It had clearly identified that the present economic model is