Geoffrey Miller, Stuyvesant P. Comfort Professor of Law, has just debuted a new book, Trust, Risk, and Moral Hazard in Financial Markets. Released by the Italian business publisher Il Mulino, it pinpoints the structural features of financial markets leaving them vulnerable to instability. Miller explains why trust is an essential feature of the markets, and why it unravels in times of economic crisis such as the global financial meltdown of 2008-09. He looks at the roles of culture, law, and self-help in promoting trust in society, as well as the parts played by moral hazard and intellectual hazard in affecting the decisions of governments and financial institutions. Miller analyzes both the causes of the most recent crisis and the potential future of the global financial system.
On May 2, Miller will present “Intellectual Hazard: A Systemic Threat to the Stability of the World’s Financial System” as part of the University of Florence’s “Beautiful Minds in Finance” series. He was also recently named to State Farm Bank’s board of directors. One of the 40 largest U.S. banks and holding $15 billion in assets, State Farm is a federal savings bank offering consumer financial products. Rather than having branch offices, the bank makes its services available online, by phone, and through independent insurance agents.
Posted on April 28, 2011