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    Financial Capability: A Behavioural Economics Perspective

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    The Financial Services Authority commissioned three academics at the London School of Economics to review the literature on behavioural economics to see what it has to say about consumer behaviour when making financial decisions. In particular, they looked at the likely impact of financial capability initiatives or other information provided to consumers with the aim of encouraging them to make better choices about financial products. The authors concluded that there is a lack of direct evidence that the FSA’s National Strategy for Financial Capability will substantially improve long-term financial decision making.

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