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Reflections on Finance and the Good Society

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  • Robert J. Shiller

Abstract

The concept of the Good Society--grounded in principles of reciprocity and the Golden Rule--is as ancient as human civilization. To many the concept may appear in conflict with the goings-on of financial markets. This may be especially true after the financial crisis. Financial theory and financial legislation cannot ignore this apparent conflict, but must instead find ways to reduce it. When teaching economics it is important to convey how individuals and organizations impose rules and standards which help reconcile their deeply-held beliefs with their business practices.

Suggested Citation

  • Robert J. Shiller, 2013. "Reflections on Finance and the Good Society," American Economic Review, American Economic Association, vol. 103(3), pages 402-405, May.
    • Handle: RePEc:aea:aecrev:v:103:y:2013:i:3:p:402-05
    DOI: 10.1257/aer.103.3.402
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    References listed on IDEAS

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    3. Robert J. Shiller, 2012. "Finance and the Good Society," Economics Books, Princeton University Press, edition 1, number 9652.
    4. Christopher L. Foote & Kristopher Gerardi & Paul S. Willen, 2012. "Why did so many people make so many ex post bad decisions? the causes of the foreclosure crisis," FRB Atlanta Working Paper 2012-07, Federal Reserve Bank of Atlanta.
    5. Kuran, Timur, 1996. "The Discontents of Islamic Economic Morality," American Economic Review, American Economic Association, vol. 86(2), pages 438-442, May.
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    More about this item

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)

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