The paper presents a theoretical model of a different and more sustainable role for financial agents and markets that is justified by systematic philosophical arguments and reasoning. It is normative rather than descriptive, and does not review how the financial system currently functions, but rather how it ought to function in the future. The goal is to identify a new direction for finance which the majority of commentators will recognize as both desirable and achievable.
This paper describes the challenge of modelling combined economic, ecological and financial systems and sets out a series of objectives for modelling the socio-economic transition towards sustainability.
Over 200 years ago, Adam Smith put forward the notion that individuals seeking to benefit themselves through trade were led as if by an invisible hand to a situation in which society as a whole could benefit.
Making the Jump: How crises affect policy consensus and can trigger paradigm shift outlines the dynamics behind the financial regulatory paradigm shift that began in 2008-2009.