As long as financial economists are mainly trained with a narrow focus on returns, the connection between the economy and society remains underexposed. Yet financial economists could play a crucial role in shaping a future where well-being, broad prosperity, and planetary boundaries take center stage.
In this argument in ESB, Karen Maas (associate professor of Accounting & Sustainability), Sam de Muijnck (founder Centre for Economic Studies) and Emiel Gieles (researcher at the Impact Centre Erasmus) argue that financial economists need a broad view of value.
They argue that financial economists:
- have a broader welfare perspective in which investment decisions are balanced on broad welfare, rather than purely financial outcomes;
- need to look at what value something brings to the real economy, rather than the financial economy;
- in transition risks should not only consider the short-term, but rather the long-term potential risks: the risks to society.
Read the plea via the button below.