Summary
Robert Shiller: Finance and the Good Society
The reputation of the financial industry could hardly be lower than it is today, with the painful aftermath of the financial crisis of 2008. Best-selling economist - New York Times columnist Robert Shiller makes no apologies for the sins of the past - he is probably the only person who predicted the stock market bubble of 2000, and the housing market bubble that caused the subprime mortgage crisis.
U In this important and contemporary book, Shiller says that we must once again put finance at the service of the general interest instead of condemning it. It makes a strong case for recognizing finance as one of the most powerful tools for solving our common problems and improving the general well-being we possess, and shows that finance is by no means a social parasite. We need more financial innovation – not less – and finance should take on a bigger role in helping society achieve its goals.
Challenging society and its leaders to rethink finance and its role in society, Shiller argues that finance should not be defined simply as handling money and managing risk but rather as overseeing social assets. It explains how people who have built careers in finance – from CEOs, investment directors and bankers to insurers, lawyers and regulators – can and do manage, protect and grow these assets. It describes how finance throughout history has contributed to the well-being of society through innovations such as insurance, mortgages, savings accounts and pensions, and suggests devising new ways of directing financial creativity towards the realization of well-being for society as a whole.
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