耶鲁-Robert Shiller-金融市场-Lect01 Intro_55911.pptVIP

Financial Markets Economics 252 Robert Shiller Introductory Lecture Financial and Insurance as Powerful Forces in Our Economy and Society This course seeks to understand the full role of advanced risk management in our economy and society Finance, insurance, some public finance The Fundamental Role of Risk Management All manner of enterprise involves risk Difficulties in quantifying Judgment Financial theory provides an understanding of these risks Financial institutions provide a framework for applying theory Moral Hazard Example: burning down a house to collect on fire insurance Ubiquity of moral hazard problems Practical finance has developed institutions to promote risk management while dealing with moral hazard Major Financial Sectors Securities Banks Insurance Social Insurance All of these have a long history of promoting risk management and dealing with moral hazard. They are fundamental elements of our successful modern economy Radical Financial Innovation Risks not easily conceptualized Public resistance to risk management Each major risk category requires difficult institutional innovations to manage Democratization of Finance Trend over the centuries has been to apply financial and insurance principles to a broader and broader segment of population Advance of information technology Finance and Psychology The Behavioral Finance Revolution NBER-Sage Seminars on Behavioral Finance, with Richard Thaler, starting 1991 /~shiller A Revolution in the finance profession. But not everyone has been captured by it. Finance and Management Most central discipline for managers is finance Integration into all aspects of business management, including accounting, corporate strategy, industrial organization Integration into government finance as well Integration growing through time Finance and Law Lawyers are often financial inventors Often government role in process Law schools deal with all the minutiae Text #1: Foundations of Financial Markets and Institutions Fra