In the years that preceded the Great Recession of 2008-09, many financial institutions in the developed world engaged in practices that increased the risk of systemic failure in the markets. The economics profession itself, overly confident of its ability to engineer stability, encouraged...

Should the portfolios of mandatory, private pension funds in developing countries be invested exclusively in the home country? Or should their managers be free to make prudent investments anywhere in the world? Traditional portfolio analysis gives a clear answer from the point of view of the...