Capital Failure: Rebuilding Trust in Financial Services

Book Overview

Adam Smith's 'invisible hand' relied on the self-interest of individuals to produce good outcomes. Economists' belief in efficient markets took this idea further by assuming that all individuals are selfish. This belief underpinned financial deregulation, and the theories on incentives and performance which supported it. However, although Adam Smith argued that although individuals may be self-interested, he argued that they also have other-regarding motivations, including a desire for the approbation of others. This book argues that the trust-intensive nature of financial services makes it essential to cultivate such other-regarding motivations, and it provides proposals on how this might be done.

• Format: Hardcover
• Language: English
• ISBN: 0198712227
• ISBN13: 9780198712220
• Release Date: October 2014
• Publisher: OUP Oxford
• Length: 424 Pages
• Weight: 1.75 lbs.
• Dimensions: 1.2" x 6.3" x 9.3"