Publication Date: May 2013
After the ﬁnancial crisis that began in 2007 many have expressed renewed doubts about the basic goodness of the ﬁnancial sectors, doubts related to deeply-held moral principles and traditions of larger society. We need to reconcile these doubts with ﬁnancial practice. We must acknowledge the important principle of reciprocity. We must understand that there are natural human tendencies towards aggression and hoarding, which no ﬁnancial institutions and codes of ethics can completely eliminate. We must appreciate the important role of professional organizations in moderating these tendencies. When these principles are made part of ﬁnancial education we can expect better public acceptance of the important role that ﬁnance plays in our society.
Business ethics, Religion, Reciprocity, Aggression, Hoarding, Repugnance, Speculation, Professional organizations, Dodd-Frank Act, Teaching, Business education
JEL Classification Codes: G0
Published in American Economic Review, Papers and Proceedings (May 2013), 103(3): 402-405 [DOI]