This paper explores the concept of financial crises as wicked problems: complex and dynamic issues that are difficult to define and solve. The author argues that financial crises are not merely technical or economic problems, but also involve social, political, and psychological factors that make them resistant to traditional problem-solving approaches. Based on an investigation of the wicked problems characteristics of financial crises, having in mind the wickedness criteria provided by Rittel and Webber (1973), the author concludes that preventing financial crises requires a more comprehensive and adaptive approach that acknowledges the inherent uncertainty and complexity of the financial system. The author provides the analysis of two case studies to support its assumption respectively: the 2008 financial crisis and the 2023 SVB and Credit Suisse collapse. Ultimately, the paper calls for a paradigm shift in the way we think about and address financial crises, from a narrow focus on technical fixes to a broader recognition of the social and political dimensions of these wicked problems.
Crisi Finanziarie Come Wicked problems: Possiamo Veramente Risolverle?
GADO, RICCARDO
2022/2023
Abstract
This paper explores the concept of financial crises as wicked problems: complex and dynamic issues that are difficult to define and solve. The author argues that financial crises are not merely technical or economic problems, but also involve social, political, and psychological factors that make them resistant to traditional problem-solving approaches. Based on an investigation of the wicked problems characteristics of financial crises, having in mind the wickedness criteria provided by Rittel and Webber (1973), the author concludes that preventing financial crises requires a more comprehensive and adaptive approach that acknowledges the inherent uncertainty and complexity of the financial system. The author provides the analysis of two case studies to support its assumption respectively: the 2008 financial crisis and the 2023 SVB and Credit Suisse collapse. Ultimately, the paper calls for a paradigm shift in the way we think about and address financial crises, from a narrow focus on technical fixes to a broader recognition of the social and political dimensions of these wicked problems. File | Dimensione | Formato | |
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https://hdl.handle.net/20.500.14240/104035