Stress Hormone in Financial Crisis Slows Recovery

Research published recently in Proceedings of the National Academy of Sciences indicates that financial crises cause stress through an increase of the stress hormone cortisol (no surprise there), but also that cortisol significantly decreases risk-taking behaviors in those who are affected by it. While a decrease of risk-taking behavior might seem to be good, it actually has disastrous consequences on an economy. During large scale financial recessions, a lack of risk taking could slow recovery. Read more […]