Book Review "Finance and the Good Society," published in Library Journal 5/15/12

Shiller , Robert J. Finance And The Good Society. Princeton Univ. . ISBN 9780691154886. econ. Shiller (economics , Yale Univ. ; Irrational Exuberance) believes the recent "financial crisis was…due to fundamental structural shortcomings in our financial institutions." He analyzes the roles of all the players: CEOs , investment managers , bankers , mortgagors , traders , insurers , market designers and engineers , derivatives providers , lawyers , lobbyists , regulators , accountants , educators , public financiers , policymakers , trustees , and philanthropists. Shiller argues that we must still address the financial system's malfunctions and deeper sources of the problems , which have not been solved by new legislation or regulations , by increasing the public's understanding of the "principles underlying corporations" in order to align corporate interests with society's. It is this "democratization and humanization of finance" that will lead to the good society , one in which citizens feel that basic economic justice is assured. VERDICT Extensively citing history , philosophy , psychology , neuroscience , and behavioral science , the book convincingly calls for better fiscal education and claims that greater knowledge will lessen resentment and inequality , improve comprehension , and facilitate "the good society." An excellent resource for readers interested in understanding and improving financial capitalism.—Joanne B. Conrad , Geneseo , NY