ECON 252: Financial Markets
Lecture 24 - Making It Work for Real People: The Democratization of Finance. Professor Shiller, in his final lecture, reviews some of the most important tools for individual risk management. Significant inequality in domestic and international communities has created a need for social insurance programs, such as those created in Germany in the late 1800s. The tax system, bankruptcy laws, and government insurance programs are used to manage risk of personal wealth. However, each of these inventions must take account of psychological factors, such as moral hazard, in order to be effective without eliminating incentives to participate in the workforce, or other negative side effects. With regard to careers, including those in finance, young people should frame decisions with morality and purpose in mind, and with a broad perspective of both. (from oyc.yale.edu)
| Lecture 24 - Making It Work for Real People: The Democratization of Finance |
| Time | Lecture Chapters |
| [00:00:00] | 1. Sources of Financial Inequality |
| [00:10:24] | 2. A Call for Social Insurance: The Government's Role in Risk Management |
| [00:25:50] | 3. Social Security in the United States |
| [00:34:32] | 4. Bankruptcy as a Risk Management Device |
| [00:50:30] | 5. Balancing Morality and Psychology: Career Advice for Young Adults |
| References |
| Lecture 24 - Making It Work for Real People: The Democratization of Finance Instructor: Professor Robert J. Shiller. Resources: Lecture 24 [PDF]. Transcript [html]. Audio [mp3]. Download Video [mov]. |
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