Macro Markets: Creating Institutions for Managing Society's Largest Economic Risks (Clarendon Lectures in Economics) [Hardcover]

Robert Shiller (Author)

Book Description

Publication Date: June 2, 1994 | ISBN-10: 0198287828 | ISBN-13: 978-0198287827

Arguing that we have largely inadequate financial markets, dealing with relatively small risks, Robert Shiller makes a unique set of proposals for marketizing the biggest economic risks faced by society today, risks that really matter to most people. The new markets could diminish the impact of international economic fluctuations and reduce the inequality of wealth. He proposes new international markets for claims on national incomes, on components and aggregates of national incomes, and for property such as real estate, and argues that these markets might dwarf our stock markets in their activity and significance. He challenges the widespread presumption that any such new market would be infeasible, by offering solutions to technical problems of measurement and settlement. There are proposals for implementing markets in perpetual claims and a substantial section on the construction of index numbers for use in settlement in the new markets.

Editorial Reviews

Review

"[A] terrific book....Fresh, provocative, well written, and well argued. [Recommended] not only to financial and macro-economists, but to the larger economic community interested in the character and costs of business cycles."--Journal of Economic Literature

"The book, unique in its approach...offers an unusual combination of passionate advocacy with precise theoretical reasoning....This excellent book does more than provide a good treatment of some self-contained and specialized questions. It is also likely to initiate a research program. For what Shiller has done is to imagine a sometimes surprising and unfamiliar world in which risk-hedging and risk-spreading markets, while not necessarily complete, are at least a great deal more complete than they are at present."--The Economic Journal

"A brilliant new book that I highly recommend."--Peter L. Bernstein, Journal of Portfolio Management

"Fresh, provocative, well written, and well argued. I recommend it not only to financial and macro-economists, but to the larger economic community interested in the character and costs of business cycles."--Journal of Economic Literature

--This text refers to the Paperback edition.

About the Author

Robert J. Shiller is Stanley B. Resor Professor of Economics. --This text refers to the Paperback edition.

Product Details

• Hardcover: 272 pages
• Publisher: Oxford University Press, USA (June 2, 1994)
• Language: English
• ISBN-10: 0198287828
• ISBN-13: 978-0198287827
• Product Dimensions: 8.6 x 5.6 x 0.9 inches
• Shipping Weight: 1 pounds
• Average Customer Review: 4.0 out of 5 stars  See all reviews (1 customer review)
• Amazon Best Sellers Rank: #3,464,466 in Books (See Top 100 in Books)

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Most Helpful Customer Reviews

0 of 3 people found the following review helpful:

4.0 out of 5 stars Great in theory...but we need a futures market for it to work properly, December 30, 2007

By 

Kalenjin (Taipei) - See all my reviews
(VINE VOICE)   

This review is from: Macro Markets: Creating Institutions for Managing Society's Largest Economic Risks (Clarendon Lectures in Economics) (Paperback)

This is a very practical nuts-and-bolts "How to save the economic world". Macro institutions are neccessary to avoid various prisoner dilemma decision issues.

The UN, World Bank, IMF and a few others attempt to carry this mantle, and they do not really execute, and for the same reason - national interest always overides collective interests.

With regards to environmental issues, Shiller's proposals in this text would be quite good at addressing the current conflicts that exist in formulating an agreement.

In the end, however, the best voting and pricing machine is the market. If we price carbon in the marketplace and limit its release, market prices will reflect all known information about carbon.