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Ethics
Kuriata, Jakub
Kuriata, Jakub
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"The most urgent issue to be addressed today is the ethical dimension of the recent failure of financial markets. The financial sector is characterised by high-leveraged investment, excessive risk taking, technological change and fast globalisation. According to standard economic theory, the role of financial markets is to allocate available resources to their most productive use and to redistribute and allocate risks and through this channel contribute positively to the economic growth. Against this backdrop, we argue that we should take a consequentialist approach. We should judge the financial markets by their ability to contribute to the human flourishing (Aristotelian eudaemonia) by performing their functions efficiently. To achieve this goal, financial markets require a multi-dimensional treatment called DIET: Debate / Incentives / Education / Targeting. Debate/ Education is to promote virtuous behaviour among market participants; “Incentives” to curb excessive risk taking and “Targeting” to allocate properly risk and resources."(pg 17)
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2011
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With permission of the license/copyright holder