For example, an extensive literature focuses on the disinflation that Paul Volcker implemented as Chair of the US Federal Reserve in the 1980s.8 It 8 See M. Goodfriend and R. King, “The incredible Volcker disinflation,” Journal of Monetary  Economics 52 (2005): 981–1015; N. G. Mankiw, R. Reis and J. Wolfers “Disagreement about Inflation Expectations,” NBER Macroeconomics Annual 18 (2003): 209–249; S. Kozicki and P. A. Tinsley, “Term structure views of monetary policy under alternative models of agent expectations,” Journal of Economic Dynamics and Control 25, no.1–2 (2001): 149–184; and C. G.  - 10 suggests that the associated downturns were larger than assumed with purely rational expectations, but they were not as severe as purely adaptive expectations would assume.
Empirical studies show that investors are willing to pay a premium for companies with superior governance practices. 24. However, there were several weaknesses in corporate governance in the run up to the crisis. Corporate governance arrangements, when put to test, failed to curb excessive risk taking in banks and financial services companies.