Traditional finance fails, but behavioral and neuro-finance predict economic disasters.
The article discusses how finance has evolved from traditional models to behavioral and neuro-finance. Traditional finance theories failed to predict economic events like the dot-com bubble and European debt crisis, leading to the development of behavioral finance. This field combines psychology and finance to provide new insights into decision-making. Neurofinance, a branch of behavioral finance, uses neurotechnology to study brain activity and predict future behavior in financial markets.