This blog is related to Dr. David Bieri’s talk about financial resilience and question “Why we (as a society) try to pursue our goals or changes we want to see through small adjustments to economic policy, rather than by changing our institutions, which are a product of our ideas and values and so presumably subject to our direct control.”
As financial sector is strongly connected with the real world, it reflects our ideas and behavior which has a huge impact to shape its resilience. Our ideas are materialized through the creation of right institutions to implement them. I think the problem lies in our way of thinking which is evolutionary or sort of learning by doing from our mistakes. This has made us prefer adjustment in the policy and systems without going fundamental changes and bring revolutionary ideas which might yield a completely new set of institutions. Another reason could be the system inertia. Basically, the financial sector is a conglomerate of multiple institutions with varied interests. As a result, it is reluctant to accommodate new changes and rather prefers minor adjustments.
