Eco Tit-bits

Was reading a paper in the EJ of the 1st quarter today. Kinda fell in love with the game theoretic approach the author took on explaining the financial crisis. Optimism and pessimism are both states of minds and many a times quite easy to manipulate. The author suggested as an example from "It's a Wonderful Life" as to how the customers ended up withdrawing lesser from their deposits while the frequent bank runs during the Great Depression, once they were made to believe that the bank is there to stay!

Wonder if we could, beside fiscal and monetary policies, frame policies taking in to account human behaviour. Modelling would be a challenge but definitely it's something that has scope for research!!