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, and that new ways to rechannel financial creativity to benefit society as a whole are needed.

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.

Please note: This is a companion version & not the original book. Sample Book Insights: #1 The financial sector is the science of goal architecture, and those who work in it are the architects who structure these goals and manage the risks of small businesses, families, school systems, cities, and corporations. #2 The CEO of a company is in a very special position, because he or she stands for an idea that defines the work of all company employees. The CEO embodies the company’s purpose, and this responsibility must be put into the hands of an individual. #3 The corporation has a problem: it has to deal with a succession of CEOs. CEOs, subject to human mortality, cannot be relaxing in the lives of kings. The company must find ways to keep its leaders focused on their jobs, attending to the boring and often unappreciated tasks that take up much of their time. #4 The financial arrangement for the typical CEO is carefully human engineered, designed to incentivize that person to stay in the position long enough and prominently enough that his or her relationship to others as their leader becomes firmly established.

The Book Finance and the Good Society was written by Robert J. Shiller who is the Sterling Professor of Economics at Yale University, a bestselling author of books like Irrational Exuberance and a Nobel Prize Laureat in Economics together with Eugene Fama and Lars Peter Hansen in 2013.

For all of their focus on asset prices, financial economists rarely ask if assets are priced ethically—that is, if their prices are compatible with the public good. Yet in a world facing major, possibly catastrophic problems—global warming, for instance, and growing inequality—it is now more important than ever that we allocate capital to projects that will benefit society as a whole, not just today but far into the future. In this book, Christian Gollier develops a powerful method for transforming our societal goals of collective prosperity into the cornerstone of our financial decision making. Ethical Asset Valuation and the Good Society starts by stating transparent moral principles and, from these, derives simple rules that can be used to evaluate saving and investment decisions in terms of the public good. Rather than trying to explain observed asset prices, Gollier derives what these prices ought to be in order to direct capital toward socially desirable investments. He focuses especially on the two prices that drive most financial decisions—the price of time as reflected in the interest rate and the price of risk—and explores the role these play in our long-term planning. If investment projects in renewable energy could be financed at a lower interest rate than those linked to fossil fuels, for instance, the energy transition would be easier to accomplish. Building on criticism of the short-term thinking of financial markets, Gollier suggests ways to shift investment toward the future through the discounting of the valuation of assets and investments with long-term benefits. In this sophisticated but accessible work, Gollier builds a bridge between welfare economics and finance theory to provide a framework for ethical valuation capable of establishing what asset prices should be on the basis of our shared moral values.

After the crisis of 2008, the social contract between the financial industry and everyone else was badly broken-perhaps, it seemed, irrevocably. Since then, banks have paid out billion-dollar settlements and Congress has passed some new laws, but a deeper rapprochement is still missing. John Taft has gathered some of the greatest financial minds of our time to explore how Wall Street can harness the same creative energy that invented credit default swaps and channel it towards the public good- in the form of a stable retirement system, investment strategies that protect the environment and reward responsible corporate behavior, and a financial industry with a culture of ethics, integrity and client focus. These perspectives, from a who's who of leaders in the field, offer a blueprint for a new kind of responsible finance and banking that secures the future for everyone. Contributors include: * Robert Shiller on financial capitalism and innovation *Charles D. Ellis on restoring ethical standards *Sheila Bair on regulatory reform *John C. Bogle and Mary Schapiro on rebuilding investor trust *Judd Gregg on long-term fiscal imbalances *Barbara Novick on the retirement savings gap *David Blood on sustainable finance. With so much brainpower in the financial sector, the potential for change is limitless. A Force for Good is the call to action the industry sorely needs.

The legendary economist explains how a nation can remain both compassionate and fiscally sound, with “common sense raised to the level of genius” (The New Yorker). This compact, eloquent book offers a blueprint for a workable national agenda that allows for human weakness without compromising a humane culture. Arguing that it is in the best interest of the United States to avoid excessive wealth and income inequality, and to safeguard the well-being of its citizens, he explores how the goal of a good society can be achieved in an economically feasible way. Touching on topics from regulation, inflation, and deficits to education, the environment, bureaucracy, and the military, Galbraith avoids purely partisan or rigid ideological politics—instead addressing practical problems with logic and well-thought-out principles. “Carefully reasoned . . . the pragmatically liberal Galbraith [argues] that both socialism and complete surrender to market forces are irrelevant as guides to public action.” —Publishers Weekly

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.

Routledge Handbook of Social and Sustainable Finance brings together an international cast of leading authorities to map out and display the disparate voices, traditions and professional communities engaged in social finance activity. With a clear societal or environmental mission, foundations, individual and group investors, as well as public bodies around the world have become increasingly eager to finance and support innovative forms of doing business. Together, founders and established businesses alike are embracing new sustainable business models with a distinct stakeholder approach to tackle social or environmental problems in what they see as a failed economic system in crisis. As a result, the topic of social and sustainable finance is at the forefront of financial economic thought. This Handbook is divided up into three parts. The first, "The Landscape of Social and Sustainable Finance and Investments", comprises of chapters from a multitude of perspectives in an effort to grasp the entirety of the landscape. The second, "Challenges, Suggestions, Critiques and Debates", focuses on areas ranging from sociological underpinnings to critical takes on markets, and the identification of specialized business models. Amongst ethical considerations, topics include the scaling of impact, an analysis of sustainability as risk prevention and comparative analyses of various methods of justification and measurement. In the third and final section, "Markets and Institutions", contributions range from various perspectives on sustainable banking to environmental marketplaces, and finally on to practical cases and country specific observations. This volume is essential reading for both academics and students in economics and finance. It is also of interest to those who study environmental economics, microeconomics and banking.

Young people, hardest hit by the global economic downturn, are speaking out and demanding change. F&D looks at the need to urgently address the challenges facing youth and create opportunities for them. Harvard professor David Bloom lays out the scope of the problem and emphasizes the importance of listening to young people in "Youth in the Balance." "Making the Grade" looks at how to teach today's young people what they need to get jobs. IMF Deputy Managing Director, Nemat Shafik shares her take on the social and economic consequences of youth unemployment in our "Straight Talk" column. "Scarred Generation" looks at the effects the global economic crisis had on young workers in advanced economies, and we hear directly from young people across the globe in "Voices of Youth." Renminbi's rise, financial system regulation, and boosting GDP by empowering women. Also in the magazine, we examine the rise of the Chinese currency, look at the role of the credit rating agencies, discuss how to boost the empowerment of women, and present our primer on macroprudential regulation, seen as increasingly important to financial stability. People in economics - C. Fred Bergsten, American Globalist. Back to basics - The multi-dimensional role of banks in our financial systems.