Lessons from the Global Financial Crisis: The Relevance of Adam Smith on Morality and Free Markets

In Lessons From the Global Financial Crisis: The Relevance of Adam Smith on Morality and Free Markets, Richard M. Morgan revives the moral foundations of classical economics to address one of the most pressing questions of our time—how did the world’s financial systems lose their ethical compass, and what can we learn from Adam Smith to restore balance?

Morgan argues that the 2008 global financial crisis was not simply a failure of regulation or risk management, but a failure of moral restraint within the framework of market capitalism. Drawing on the timeless wisdom of Adam Smith’s The Theory of Moral Sentiments and The Wealth of Nations, the author reconstructs a philosophical foundation for economic behavior that emphasizes trust, virtue, and moral responsibility alongside the pursuit of profit.

The book explores how Smith’s moral philosophy, often misunderstood or selectively interpreted, offers a framework for rebuilding credibility in global markets. Morgan skillfully connects Smith’s view of human sympathy and moral judgment to contemporary finance, highlighting that free markets can only function effectively when grounded in ethical conduct and mutual trust.

Through historical analysis and modern examples, Morgan illustrates how greed, excessive leverage, and the detachment of finance from real economic value led to systemic instability. He argues that policymakers, financiers, and scholars must rediscover Smith’s holistic view of economic systems—one where self-interest is balanced by moral duty.

Richly reasoned and deeply relevant, this book challenges readers to reconsider the moral dimension of capitalism. It serves as both a philosophical reflection and a practical roadmap for rebuilding confidence in global financial systems. For economists, investors, and historians of thought, Morgan’s work is a timely reminder that true market freedom cannot exist without ethical responsibility.

Contents:

• Smith’s Life and Career
• The Philosopher Economist
• Smith and Social Cohesion
• Moral Judgments
• How Living Standards Are Improved
• Smith and Self Interest
• The Importance of Benevolence
• Self Interest Does Not Mean Selfish
• Self Interest, Saving, Investment and Prosperity
• Self Interest and the Banking Sector
• Smith, the Critic of Exploitation
• The Proponent of a Well Governed Society
• The Threat of Government Intervention

Lessons from the Global Financial Crisis: The Relevance of Adam Smith on Morality and Free Markets By Richard M. Morgan pdf