The public was very angry with the bailouts. They got diverted by all kinds of people through means of communications. The scary thing right now is we're getting the biggest banks to be bigger and they are inscrutable. And so in our new edition of the book we unpack all of that and go a lot deeper into the devilish details in ways people can understand. In ways of talking about why I know executives went to jail. All the things that animate people about the crisis which are less the regulation and all the post-crisis movies.
Communication is like a game. For it to work, each person has to trust that their partner will play by the rules. As Professor Anat Admati says, the same is true for corporations and their stakeholders.
“To have good governance, you need trust and accountability,” says Admati, a professor of finance and economics and the director of the Corporations and Society Initiative. How does a society ensure that markets, businesses, and governments are all on the same page? As Admati says, “We need rules. I can commit to you that I won’t harm you because something bad will happen to me if I [do].”
In this episode of Think Fast, Talk Smart, Admati joins host Matt Abrahams to discuss how communication forms a bedrock of trust that can align markets, businesses, and governments — for more accountable capitalism and a healthier society.
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