Oh dear

Former Bank of England policymaker Charles Goodhart, who is now professor emeritus of banking and finance at the London School of Economics, told the committee that the worst financial crisis since the second world war could have been prevented if more women were on the boards of major companies. \”Women tend to be more cautious and have a longer term outlook. I think that men can be more aggressive and prepared to take larger risks,\” he said. \”There would have been less likelihood of the financial crisis if we had a larger number of female chief executives in the financial sector.\”

He said that there were \”remarkably few\” female chief executives in the financial sector and that it is \”a great pity\”. \”I think that the longer term and cautious tendency that women have and less of the alpha male would be beneficial.\”

This is a very common view. It\’s also wrong, despite being very common.

Mixed sex environments increase risk taking in both men and women. Same sex environments reduce risk taking in both men and women.

3 comments on “Oh dear

  1. All we needed was for the government to regulate the volume of credit in their currency monopoly by adjusting reserves.

    M4 of 15% needs to be brought under control via higher reserve requirements.

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