Financial Policy: Tempering Greed

Gary D. Lynne ()
Additional contact information
Gary D. Lynne: University of Nebraska–Lincoln

Chapter Chapter 7 in Metaeconomics, 2020, pp 139-165 from Palgrave Macmillan

Abstract: Abstract The 2008 financial crisis revealed the effects of excessive Greed. The mantra leading to the crash had been that Greed is good, and excessive Greed is extremely good. Microeconomics, especially the Libertarian branch of it, as represented in Chicago School of Economics, proposes that the market will temper the Greed. Metaeconomics clarifies that the only thing that will temper Greed is the shared other-interest, combined with adequate Self-control within each person in the market. The other-interest can be used as the basis for nudging the Self-interest on to better paths; when that fails, then the Other-interest needs to be brought to bear in government controls, like the old Glass-Steagall Act, which was in effect revived to temper and bound the banks and Wall Street.

Date: 2020
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:paichp:978-3-030-50601-8_7

Ordering information: This item can be ordered from
http://www.palgrave.com/9783030506018

DOI: 10.1007/978-3-030-50601-8_7

Access Statistics for this chapter

More chapters in Palgrave Advances in Behavioral Economics from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().