Daily Archives: 30 Sep ’09

Ethics and Economics: The Morality of Innovation

On Edmund Phelps: "When the word morality comes up in connection with economics, income distribution and financial stability are usually the issues. Is it moral for rich countries to use such a high proportion of the world’s resources or for investment bankers to earn large bonuses? And is it moral for financial markets to experiment with volatile derivatives that increase the potential for panics?"