Reflections on Finance and the Good Society

11 Pages Posted: 9 May 2013

See all articles by Robert J. Shiller

Robert J. Shiller

Yale University - Cowles Foundation; National Bureau of Economic Research (NBER); Yale University - International Center for Finance

Date Written: May 8, 2013

Abstract

After the financial crisis that began in 2007 many have expressed renewed doubts about the basic goodness of the financial sectors, doubts related to deeply-held moral principles and traditions of larger society. We need to reconcile these doubts with financial practice. We must acknowledge the important principle of reciprocity. We must understand that there are natural human tendencies towards aggression and hoarding, which no financial institutions and codes of ethics can completely eliminate. We must appreciate the important role of professional organizations in moderating these tendencies. When these principles are made part of financial education we can expect better public acceptance of the important role that finance plays in our society.

Keywords: Business Ethics, Religion, Reciprocity, Aggression, Hoarding, Repugnance, Speculation, Professional Organizations, Dodd-Frank Act, Teaching, Business Education

JEL Classification: G0

Suggested Citation

Shiller, Robert J., Reflections on Finance and the Good Society (May 8, 2013). Cowles Foundation Discussion Paper No. 1894. Available at SSRN: https://ssrn.com/abstract=2262336 or http://dx.doi.org/10.2139/ssrn.2262336

Robert J. Shiller (Contact Author)

Yale University - Cowles Foundation ( email )

Box 208281
New Haven, CT 06520-8281
United States
203-432-3708 (Phone)
203-432-6167 (Fax)

HOME PAGE: http://www.econ.yale.edu/~shiller/

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States
203-432-3708 (Phone)

Yale University - International Center for Finance ( email )

Box 208200
New Haven, CT 06520
United States
203-432-3708 (Phone)
203-432-6167 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
600
Abstract Views
1,860
rank
43,337
PlumX Metrics