Contents
Preface ix
Acknowledgments xiii
introduction The Promise of Economic Security 1
Part One: Economic Risks in an Advancing World
one What the World Might Have Looked Like since 1950 21
two The Hidden Problem of Economic Risk 32
three Why New Technology Creates Risks 46
four Forty Thieves: The Many Kinds of Economic Risks 58
Part Two: How Science and Technology Create New
Opportunities in Finance
five New Information Technology Applied to Risk
Management 69
six The Science of Psychology Applied to Risk
Management 82
seven The Nature of Invention in Finance 99
Part Three: Six Ideas for a New Financial Order
eight Insurance for Livelihoods and Home Values 107
nine Macro Markets: Trading the Biggest Risks 121
ten Income-Linked Loans: Reducing the Risks of Hardship
and Bankruptcy 139
eleven Inequality Insurance: Protecting the Distribution
of Income 149
twelve Intergenerational Social Security: Sharing Risks
between Young and Old 165
thirteen International Agreements for Risk Control 175
Part Four: Deploying the New Financial Order
fourteen Global Risk Information Databases 189
fifteen New Units of Measurement and Electronic Money 202
sixteen Making the Ideas Work: Research and Advocacy 222
Part Five: The New Financial Order as a Continuation
of a Historical Process
seventeen Lessons from Major Financial Inventions 231
eighteen Lessons from Major Social Insurance Inventions 245
epilogue A Model of Radical Financial Innovation 269
Notes 277
References 325
Index 351