OXFORD UNIVERSITY PRESS

A Call for Judgment: Sensible Finance for a Dynamic Economy

ISBN : 9780199756070

Price(incl.tax): 
¥4,609
Author: 
Amar Bhide
Pages
368 Pages
Format
Hardcover
Size
162 x 236 mm
Pub date
Nov 2010
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Our prosperity requires the enterprise of innumerable individuals and businesses who exercise their imagination and judgment-and bear responsibility for outcomes. And it is through dialogue and relationships that widespread enterprise is fostered, not merely prices in anonymous markets. Yet modern finance blatantly neglects these necessary elements for enterprise, and the dynamism of the real economy is stifled. For the last several decades finance has become increasingly centralized, distanced, and mechanistic. Instead of thousands of lending officers making judgments about borrowers who they know, credit decisions are the output of the models of a few Wall Street wizards and credit agencies whose mistakes have widespread, sometimes disastrous consequences. A Call for Judgment explains in a clear way how bad theories and mis-regulation have caused this dangerous divergence between the real economy and finance. Bhide accessibly lays out how so-called advances in modern finance helped mass-produce toxic products, based on backward-looking, top-down models that have no place in today's dynamic and decentralized world. Thanks to excessively tight securities laws and loose banking laws, anonymous transactions have displaced relationship-based finance. Returning to relationships and case-by-case judgment requires at a minimum tough rules that limit banks-and all deposit taking institutions-to basic lending and nothing else. Financing the Venturesome Economy is essential reading for anyone interested bringing the economy back to a point at which decisions can be made that foster organic economic growth without the potentially disastrous risks currently accepted by modern finance.

Index: 

PREFACE
INTRODUCTION
PART 1: ORDERING THE INNOVATION GAME: BEYOND DECENTRALIZATION AND PRICES
1. The Decentralization of Judgment
2. The Halfway House - Coordination through Organizational Authority
3. Dialogue and Relationships
4. Reflections in the Financial Mirror
PART 2: WHY IT BECAME SO
5. All-Knowing Beings
6. Judgment Free Finance
7. Storming the Derivative Front
8. Liquid Markets, Deficient Governance
9. Financiers Unfettered
10. The long slog to stable banking
11. Not there Yet
12. Finally on Track
13. Derailed by Deregulation
14. Restoring Real Finance
ACKNOWLEDGMENTS
NOTES
REFERENCES
INDEX

About the author: 

Amar Bhide is Schmidheiny Professor at the Fletcher School of Law and Diplomacy, Tufts University.

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