Alex Edmans @aedmans
Professor of Finance, Fellow of the British Academy, non-exec director, author, TED speaker. Purposeful business, responsible investing, behavioral economics. alexedmans.com London Joined January 2012-
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"No one voted for the bond markets" is like saying no one voted for gravity. You can dislike a constraint, but pretending it doesn't exist won't make it disappear. With £3 trillion of UK debt, even small increases in borrowing costs translate into £billions borne by taxpayers.
We must stop being in hock only to the bond markets. No one voted for the bond markets.
Just received my spiral-bound copy of The Madness of Markets. I've never enjoyed writing anything more than this and I can't wait for it to come out in September.
You thought, and you thought wrong. Good leadership indeed involves proposing new ideas. But it also means flexibility, humility and a willingness to reverse course if an idea backfires. This applies both to Leam Richardson and One Royal.
“We thought there might be a better way.” Chairman Rob Couhig explains the thinking behind One Royal and how the new subscription model is designed to provide greater flexibility, value and a closer connection to Reading Football Club. Sign up now and secure your place for
Andy Burnham is completely wrong to say that Thatcher deregulated water, gas, and electricity. She privatised them – and simultaneously regulated them by creating Ofwat, Ofgas, and Offer. Regulation goes hand-in-hand with privatisation to ensure that utilities don't abuse monopoly power. If utilities are not maximising societal welfare, the solution is stronger regulation, not re-nationalisation.
Andy Burnham: “I don’t blame anyone who left our party. I don’t blame anyone who voted for other parties”. “We need to renationalise water, energy and housing.”
Traffic fatalities increase by 15% on the day major music albums are released. The effect is stronger in single-occupant vehicles where you don't have a passenger to unlock the phone and scroll through a new track list. Prior evidence found more crashes on Tax Day due to stress.
@liebauda @PenguinUKBooks @CrownPublishing Thanks so much for your interest!
The Madness of Markets is now available for pre-order. How hype, sentiment, and even World Cup defeats move markets – and how to profit from the chaos. Think Freakonomics meets investing: wacky patterns, surprising insights, and practical tips. @PenguinUKBooks @CrownPublishing
@desireefixler He certainly acts like a rock star; his primary goal is self-publicity. Interesting that Lagarde describes him as a "rock star" rather than effective, formidable, capable, standout, leading - or any other adjective that suggests results rather than bluster.
@MerrynSW Spot on. Better WiFi on trains does not get you home earlier to spend time with your kids, cook dinner, help out around the house, or exercise.
"Do Carbon Offsets Offset Carbon?" has won the 2026 Best Paper Award for American Economic Journal: Applied Economics. The answer is No. At least 52% of carbon offsets were allocated to projects that would have been built anyway. aeaweb.org/articles?id=10…
A communist manifesto - no growth just more welfare spending.
Minimum wage rising 📈 State pension increasing 💷 Two child limit abolished 🏡 Child poverty falling 📉 Rights at work strengthened 💪🏻 Labour promised change. We are delivering change. theguardian.com/commentisfree/…
“Executive-pay packages are notoriously complex, stuffed with performance measures and all-or-nothing targets,” laments Alex Edmans. The real question, he argues, is whether it is earned economist.com/by-invitation/…
@hwallop Yesterday I came across a typically inflated LinkedIn profile: "June Sarpong OBE is one of the world’s leading speaker’s, educator’s ...". But not one of the world's leading speller's or writer's.
Executive-pay packages “can lead bosses to focus on what is measurable rather than what matters”, argues Alex Edmans. The finance professor offers a simple solution—and it’s not just paying CEOs less economist.com/by-invitation/…
The real question is not whether CEO pay is high. It is whether it is earned. "By Invitation" article for @TheEconomist economist.com/by-invitation/…
@florianederer Sadly, most schools don't take teaching ratings seriously for any faculty, tenured or untenured.
This paper critiques the current practice of #diversity, equity, & inclusion in business, arguing that its reduction to demographic representation has led to polarization & failed to achieve #DEI’s true objectives. Read: spkl.io/6011AUmZT Subscribe: spkl.io/6015AUmZX
In 2021 I did a @GreshamCollege public lecture series called "The Principles of Finance", on basic financial literacy. Yesterday I recorded shorter versions for A-level students. I set about updating my slides .... and realised I didn't have to. The personal allowance was £12,570 back in 2021. And it's still £12,570 now – and will be £12,570 at least until 2031. But I did have to update: ⬇️Dividend allowance (down from £2,000 to £500) ⬆️Dividend tax rates (all up) ⬇️Capital gains allowance (down from £12,300 to £3,000) All of this is bad news for savers (and, for the personal allowance, workers). Yes the public finances need repairing – but there are widespread inefficiencies that could be tackled first.
Handed in the final draft of my next book, "The Madness of Markets: Why Smart Investors Make Crazy Decisions – And How to Exploit Them". It's about the psychology of financial markets – what causes booms, busts, and bubbles; why the market overreacts to irrelevant information but ignores what truly matters; and how we can avoid common investing errors and turn others' mistakes to our advantage. Out of everything I’ve ever written, this is the one piece I’ve had the most fun writing and am most excited to share when it comes out – because of the really cool research by leading scholars in behavioral finance that it covers. This research was inspired by innovative ideas, draws from creative data sources, meets the highest standards of scientific rigour – yet remains practical for everyday investors. @PenguinUKBooks @CrownPublishing
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