Macro markets

In this original book, Professor Shiller has created a unique and authoritative set of proposals for establishing new markets for the management of the biggest economic risks facing society. Our existing financial markets, he argues, are inadequate to deal with such risks and major new markets should be set up. He proposes a class of new international markets, macro markets, markets for claims on aggregate income and service flows. Our stock markets are markets for claims on corporate dividends, and yet the latter are only a few per cent of national incomes: only 3 per cent in the United…