Nobel Prize-winning economist explains why we need to reclaim finance
for the common good
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.
