1. What Is Good Finance and FinTech in the Economy?
Shyam Sunder
Fintech: Challenges to Governance and Regulation in Financial Markets
Society for Advancement of Socio-Economics
Kyoto, Japan, June 24, 2018

2. An Overview The world without finance Good innovations of finance
Consequences
If a little is good, more must be better!
Eight-hundred pound gorilla
Rent-seeking and the role of finance academia
Prospects for the future

3. The world without finance

4. Good innovations of finance

5. Good innovations of finance
Lydian Coin: Lion and Bull
Ancient Chinese Paper Money

6. Good Innovations in Finance

7. Good innovations of finance

8. Good Innovations in Finance

9. Good Innovations in Finance

10. Consequences of Good Finance

11. If a little bit is good, more must be even better!
Big Banks
Crypto-currencies

12. Eight-hundred pound gorilla

13. If a little bit is good, more must be even better!

14. Rent-seeking and the role of finance academia
Finance as math models
Dividend irrelevance
Capital structure irrelevance
Capital Asset Pricing Model
Efficient Market Theory

15. Prospects for the Future
Our theories should have predictive power and guide better decisions
FinTech should be judged by social efficiency and not as instruments of rent seeking
Some 12-15% of US GDP is financial services (up from about 3%)
How much value does it add to the social pie?
We need to find out, and focus our work on such questions

16. Shyam.sunder@yale.edu https://som.yale.edu/faculty/shyam-sunder
Thank you!