Why Markets?

Ever questioned the very existence of capital markets? Why do we allocate capital for risky uses through them? Join us as we dive into these mysteries with Edward Finley, a seasoned Wall Street investor and sometime Professor at the University of Virginia. Together, we'll decipher what constitutes the public good and explore how capital markets, through promoting risk taking, serve this greater cause. We'll unravel the concept of national wealth and the role it plays in the allocation of capital among productive uses. By the end of our chat, we promise you'll have a fresh perspective on the role of capital markets.

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In the second half, we'll discuss how a blend of speculation, the separation of ownership and management, limited liability, and democratic institutions make it possible for capital markets to live up to their promise. We'll shed light on how speculation aids decision-making under uncertainty and fosters healthy innovation. Finally, we'll discuss how the interplay of economic efficiency, social justice, and individual liberty can lead to a better society, reflecting on the core economic theory by Keynes. So strap in and get ready for a thought-provoking journey into the world of capital markets!