Nobel laureate Robert Merton has emphasised the need to build trust in financial markets.
In a freewheeling chat with professor Jayanth Varma of IIM Ahmedabad, Merton highlighted the need for governments, regulators and even rating agencies to rebuild the trust of investors with transparency and accountability.
The M.I.T. professor also spoke about the benefits of a global financial system, building a diversified global portfolio and limiting capital controls in financial markets as he says “there is no risk-free asset class in the world.”
Watch the entire conversation here: