Endogenous Instability

March 2012
Financial risk management is hindered by the conventional way of thinking on economics. Especially the assumption that economies are stable and they are prone only to external shocks once in a while. Reality is much more hectic and has more similarity with instability created from within the economy, by our human nature. This results in more severe market crashes and deeper depressions than mainstream theory would otherwise dictate. This is the theory of Endogenous Instability.

Theo Kocken, Founder and Group CEO of Cardano was inaugurated as a professor of Risk Management at the VU University Amsterdam on 15 March 2012. His inauguration speech was on the theory of Endogenous Instability.