The reputation of the financial industry could hardly
be worse than it is today in the painful aftermath of
the 2008 financial crisis. ''New York Times''
best-selling economist Robert Shiller is no apologist
for the sins of finance - he is probably the only person
to have predicted both the stock market bubble of 2000
and the real estate bubble that led up to the subprime
mortgage meltdown. But in this important and timely
book, Shiller argues that, rather than condemning
finance, we need to reclaim it for the common good. He
makes a powerful case for recognizing that finance, far
from being a parasite on society, is one of the most
powerful tools we have for solving our common problems
and increasing the general well-being. We need more
financial innovation - not less - and finance should
play a larger role in helping society achieve its goals.
Challenging the public and its leaders to rethink
finance and its role in society, Shiller argues that
finance should be defined not merely as the manipulation
of money or the management of risk but as the
stewardship of society's assets.He explains how people
in financial careers - from CEO, investment manager, and
banker to insurer, lawyer, and regulator - can and do
manage, protect, and increase these assets. He describes
how finance has historically contributed to the good of
society through inventions such as insurance, mortgages,
savings accounts, and pensions, and argues that we need
to envision new ways to rechannel financial creativity
to benefit society as a whole. Ultimately, Shiller shows
how society can once again harness the power of finance
for the greater good. |
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