(Edited with Randall S. Krosner and Benjamin M. Friedman) Over the last few years, the ﬁnancial sector has experienced its worst crisis since the 1930s. The collapse of major ﬁrms, the decline in asset values, the interruption of credit flows, the loss of conﬁdence in ﬁrms and credit market instruments, the intervention by governments and central banks: all were extraordinary in scale and scope. In this book, leading economists Randall Kroszner and Robert Shiller discuss what the United States should do to prevent another such ﬁnancial meltdown. Their discussion goes beyond the nuts and bolts of legislative and regulatory ﬁxes to consider fundamental changes in our ﬁnancial arrangements. Kroszner and Shiller oﬀer two distinctive approaches to ﬁnancial reform, with Kroszner providing a systematic analysis of regulatory gaps and Shiller addressing the broader concerns of democratizing and humanizing ﬁnance. Kroszner focuses on key areas for reform, including credit rating agencies and the mortgage securitization market. Shiller argues that reform must serve to make the full power of ﬁnancial theory work for everyone — bringing the technology of ﬁnance to bear on managing risk, for example — and should acknowledge the reality of human nature. After brief discussions by four commentators, Kroszner and Shiller each oﬀer a response to the other’s proposals, creating a fruitful dialogue between two major ﬁgures in the ﬁeld.