The authors of this article propose a classroom simulation designed for advanced economics or finance courses whereby student teams role-play Moody's sovereign credit risk analysts. Despite the importance of sovereign credit risk ratings in affecting the funding liquidity of countries, the process generating ratings is a black box. The authors use…

The recent flow of headlines excoriating bankers and financiers for malfeasance, fraud, and collusion has been almost biblical in proportion. Counterparties that appeared creditworthy based on financial statements and ratings have revealed that they are impaired either due to computer errors, control failures, malfeasance, or potential regulatory…

The current financial crisis not only brought us high levels of unemployment, abrupt international disruption in economic growth, disinflation of assets prices and a dry up in the credit markets, among many other things; but it also brought us a crisis in the theory of economics and finance. Even though, a discussion concerning "a crisis in the…

Reflection on events at work, including errors is often as a means to learn effectively through work. In a cross-sectional field study in the banking sector, we investigated attitudes towards workplace errors (i.e. error orientation) as predictors of reflective activity. We assumed the organisational climate for psychological safety to have a…

Demonstrates how a simple portfolio problem expressed explicitly as an expected utility maximization problem can be used to instruct students in portfolio theory. Discusses risk aversion, decision making under uncertainty, and the limitations of the traditional mean variance approach. Suggests students may develop a greater appreciation of general…