Harun Khan, a Deputy Governor at the Reserve Bank of India, on February 6 said the unethical behaviour of financial professionals that contributed to the financial crisis has strengthened the case for increased education about social costs of crises. At the Interdisciplinary Seminar on Psychonomics in Mumbai, India, Khan said greed and fear played a big role in the way markets behaved during the recent global financial crisis, which caused severe damage to many economies around the globe. He said part of the reason was that finance and economics was being practised by a set of people who are often conditioned for self-interest and aimed to maximise utility irrespective of the welfare of others. "They were more mechanical in nature, probably due to the fact they specialised in science and technology, and with less or no input from humanities during their course of education," he said. "They had thus no compunction in mis-selling the products to unsophisticated investors and borrowers, thereby sowing seeds of disaster for households and the economy." Khan said this did not, however, absolve bankers of the unethical behaviour that ultimately led deep structural damage to the system and harmful social consequences. He argued there could be a strong case for conditioning of all those who join finance professions by way of values-based education and socially relevant experiences during their college days.
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