An Educational Construct of the First Great Financial Crisis of the Third Millennium

Abstract

The intellectual fall-out from the financial crisis has resulted in renewed debates on a wide range of issues from financial regulation to the future of capitalism. As these discussions gather momentum, there is yet another dimension that requires closer examination. This paper cites financial illiteracy as a significant causal factor in the sub-prime debacle and argues that for market economies to function efficiently the consumer must be equipped with the skills to make optimum decisions about complex financial products.

Keywords: credit crunch, curriculum, economic education, financial literacy, financial crisis, personal finance

JEL Classification: A21, D14, I21