The problem of charging interest has been discussed since the time of Aristotle. It was condemned in the Christian religion in the Middle Ages. Only when the interest was specified as a payment for productive capital was it considered that the borrower, enriched by the money lent, should let the lender benefit in accordance with the principle of fairness. The borrower should share the profit with the lender, and from this moment the percentage is no longer something shameful (...) and neglected. Religious beliefs and accepted moral values have changed over time, adapting to the circumstances, so has the approach to collecting interest from the capital lent. However, there is still a great deal of criticism of excessive interest rates. The purpose of this paper is to present a discussion related to the charging of interest presented in the tradition of economics and also to show some aspects of the problem in relation to the present times, such as excessive debt and responsible lending. (shrink)

Social attitudes toward usury (here defined using the archaic meaning as the taking of interest on loans) have changed dramatically over the centuries. From antiquity until the Protestant Reformation, usury was regarded as an inherently evil activity. Today, with few exceptions, usury is met with moral indifference. Modern objections to usury are limited to protest against "excessive" interest rates rather than interest per se. With this change in focus, the very meaning of the term "usury" (...) has also changed. Many early pronouncements against the taking of interest emphasized the plight of the poor, but ironically, the poor actually pay the highest rates of interest in the modern American economy. Despite the universality of usury, some socio-economic subcultures still manage to avoid the taking or giving of interest. Orthodox branches of both Judaism and Islam have maintained bans on usury throughout the centuries and up to the present time. This is especially interesting in the case of Judaism, given the popular cultural image of the Jew as usurer. Jewish free loan systems may actually offer a model for modern loan programs that can be designed to aid poor borrowers, who are frequently shut out of mainstream financial services. (shrink)

In 1937 Joan Robinson proposed that “when capitalism is rightly understood, the rate of interest will be set at zero and the major evils of capitalism will disappear”. A permanent zero rate would abolish capitalist profit except in limited cases, leaving nearly all output to be claimed by labour as wages. It would allow capital to be allocated on the basis of prospective social benefit rather than short-term profitability and a collateral basis that favours the wealthy. It would remove (...) some of the economic pressure to use resources unsustainably. So why not do this? I argue that the few available philosophical arguments for positive interest rates are unsatisfactory. Those who want a just and sustainable form of capitalism should target net zero for the interest rate. (shrink)

This paper addresses the fairness of microcredit interest rates. Since microfinance institutions provide credit for the poor at relatively high prices, the fairness of their interest rates has been repeatedly debated. We first apply Rawls' principles of justice to the case of microcredit interest rates and suggest some limitations related to the hypothesis of rationality of the borrowers and the level of inequality. We then suggest another framework based on the analysis of the distribution (...) of the benefits generated by the transaction to assess the fairness of interest rates. We conceptualize this as the distribution of the bargaining range between the borrowers' and the institutions' reservation price and discuss what these reservation prices could be in the context of microfinance. (shrink)

This paper addresses the fairness of microcredit interest rates. Since microfinance institutions provide credit for the poor at relatively high prices, the fairness of their interest rates has been repeatedly debated. We first apply Rawls' principles of justice to the case of microcredit interest rates and suggest some limitations related to the hypothesis of rationality of the borrowers and the level of inequality. We then suggest another framework based on the analysis of the distribution (...) of the benefits generated by the transaction to assess the fairness of interest rates. We conceptualize this as the distribution of the bargaining range between the borrowers' and the institutions' reservation price and discuss what these reservation prices could be in the context of microfinance. (shrink)

Uncertainty plays an important role in The General Theory, particularly in the theory of interest rates. Keynes did not provide a theory of uncertainty, but he did make some enlightening remarks about the direction he thought such a theory should take. I argue that some modern innovations in the theory of probability allow us to build a theory which captures these Keynesian insights. If this is the right theory, however, uncertainty cannot carry its weight in Keynes’s arguments. This (...) does not mean that the conclusions of these arguments are necessarily mistaken; in their best formulation they may succeed with merely an appeal to risk. (shrink)

Although the mathematics of interest is very precise, the practice of charging computing and disclosing interest or cost of credit is full of variations and therefore often questionable on ethical grounds. The purpose of this paper is to examine some of the prevalent practices which are incorrect, illogical, unfair or deceptive. Both utilitarian and formalist schools of ethical theory would find these practices to be inappropriate. The paper will specifically look at unfair practices in the areas of estimation (...) of intrayear rates, use of 360 days in a year, the "rule of 78th", interest rate ('APR') advertising, and computation of unpaid balance by credit card issuers to figure interest costs.The current practices are not in the best interest of the average consumer. There is, therefore, an urgent need for new legislation, change in regulatory code and disclosure requirement for eliminating these unethical practices. The author recommends that the Truth in Lending Code of the Federal Reserve should require the disclosure of the effective APR if the periodic rate is determined by dividing the 'APR' by the number of payment period in a year; the use of 360 days in a year methods and the "Rule of 78ths" should be immediately discontinued; Deceptive advertising, which tend to understate the true cost of credit or hides hidden costs and fees should be outlawed; interest should be payable with the same frequency as the frequency of compounding and credit card holders should be provided with a comparative example of various methods of balance computation. (shrink)

The research purpose is to find out if signs of a real estate bubble are shown at the austrian real estate market right now. Lending rates are composed of different factors: the base rate is the price that the customer is willing to pay. The risk premium is given to compensate the lenders risk of full or partial failure of repayment. The inflation adjustment takes into account the impairment of money over the term of a loan. The liquidity premium (...) increases with extension of the term of the loan. The European Central Bank influences the interest rate policy by varying the interest for money saved there by the banks. At the moment there are used negative interest rates, i.e. penalty interest. The methodology used was that recently the ECB lowered the interest rates which might cause real estate bubbles and, subsequently, banks and economic crises may follow, if interest rates were to be increased again sooner or later. Therefor the author studied the amount of sales and the connection to the interest rates and the interest rate policy of the banks right now. Summarizing it can be seen that in Kittsee, an Austrian area with a lot of real estate sales, as an example, 565 real estate properties were sold in the years 2005 to 2015, the median prices increased in relation to the buyers residence in Austria or non- Austrians at about 375% to 490%, this might indicate signs of change on the market. (shrink)

The marketization of interest rate is an inevitable requirement for China’s financial reform and joining the WTO to connect with the international financial market. It is also an important link to improve the marketization degree of China’s financial system. The marketization of interest rate in China is gradually advancing according to its preset mode. In the process of interest rate marketization, an unavoidable problem is that while the interest rate marketization gives the commercial banks the autonomy (...) of capital pricing, the fluctuation of interest rate is more and more frequent. However, due to the fluctuation of interest rate, the loan as the main assets of commercial banks will be prepayed by borrowers, and the time deposit as the main liabilities of commercial banks will be withdrawn by depositors in advance; that is, embedded options are implied in asset liability items, which makes it difficult for commercial banks to accurately calculate the actual interest margin of deposits and loans and manage the interest rate risk. Therefore, it is of great significance to identify and price such embedded option value. On the basis of identifying and decomposing the embedded options in deposit and loan of commercial banks, according to the change characteristics of deposit and loan interest rate of Chinese commercial banks, this paper chooses jump-diffusion interest rate model to describe the change of benchmark interest rate of deposit and loan in China and demonstrates the advantages of this model compared with other models. Based on Monte Carlo simulation technology, the embedded options of five-year fixed deposit and ten-year prepayable loan in China are priced. On this basis, it points out that the real interest margin of commercial bank’s deposit and loan should be the nominal interest margin minus the value of deposit and loan’s embedded options. In the process of interest rate risk management, we should pay attention to the existence of embedded options and carry out effective management. (shrink)

Publication date: 29 September 2016 Source: Author: Ahamed Lebbe Mohamed Aslam Interest rate is one of the primary tools in the monetary policy which moves the countries’ economy into positive or negative path. In the meantime, the fiscal imbalance keeps a bond on the interest rate of countries. Empirically, this study tested the impact of fiscal imbalance on the interest rate in Sri Lanka using the annual time series data from the period of 1959 to 2014. In (...) this study, the fiscal imbalance was considered as the independent variable and the interest rate was used as the independent variable. While the money supply and the inflation rates were utilized as controlled variables. To test this impact, the multiple regressions model was employed. Based on the regression outcome, the fiscal imbalance positively maintained the relationship on the interest rate at one percent level. (shrink)

Introduction. The paper considers a wide range of monetary policy rules: integral stabilization, NGDP targeting, price level targeting, raising the inflation target, introducing negative nominal interest rates etc. The author also considers discretionary policy used by central banks when the nominal rate is close to zero, such as dramatic preventive cut of the key interest rate and interventions in the open markets with the aim of cutting long-term interest rates. The relevance of this problem is (...) supported by global long-term macroeconomic and demographic factors, such as the dynamics of oil prices and the aging of the population. The aim of the paper is to identify the most effective monetary policy rules in order to reduce the risk of a nominal interest rate falling to zero. Methods. Analysis of the background and the results of general equilibrium models modeling monetary policy is carried out. Analysis of the role of current global trends (based on statistics) in aggravating the problem of declining interest rates. Scientific novelty of the research. The author systematizes the conclusions of modern macroeconomic theory, which offers a number of monetary rules making it possible to reduce the likelihood of falling into the zero bound of interest rate. Results. The effectiveness of monetary rules such as targeting nominal GDP and price levels in preventing the nominal interest rate from falling to zero is shown, primarily due to more efficient public expectations management which is a weak point of discretionary intervention. Conclusions. Under the current global factors for many developed countries and some oil-exporters, the downward trend in nominal rates persists. Combined with slowdown in economic growth, such threat may have negative consequences for the Russian economy. In this case, it seems reasonable to stick to the inflation target above 2% per year and in the future to consider switching to targeting the price level or nominal GDP. (shrink)

We attempt in this paper to tie together several basic insights of praxeology, and several that are not at all that basic. These include the following: that gains from exchange are subjective; that this applies to profits and interest; that credit transactions can occur under barter; that interest arises from time preference even under a pure time preference theory of interest; and that productivity can, under disequilibrium conditions, affect the various rates of interest.

A discussion of the economic work of Genovesi, the first professor of political economy in Europe. Genovesi supports a physiocratic theory of value as the net produce of agricultural work; a theory of interest as the motive of human action, intermediate between the extreme poles of excessive self-love and benevolence; a doctrine of innate rights as a limit to the sovereign's action; a commercial policy that limits dependence on foreign countries. He also took a position in the eighteenth-century (...) debate on "luxury", taking a firm stance in favour of moderate luxury, considered not vice but virtue as the right means between excessive parsimony and prodigality. He also discusses the function of the classes not dedicated to "mechanical arts" and not producing "rents" but nevertheless useful to society (Adam Smith's "unproductive" workers) in which he includes the proprietary classes which he defends against Rousseau's radical criticism, limiting himself to advocating the abolition of inalienable properties. Finally, he advocates population growth as a way to increase public happiness, the development of agriculture, the freedom of grain trade and the interest rate. (shrink)

Nineteen eighty-seven was a year of financial paradox. During the 1980s there was the strong perception that the Americans, the Europeans, and the Japanese were living well, contrasting with the accounting data that suggested the house of cards was about to fall. Three factors dominated the financial economy of 1987: the 25-percent drop in equity prices in mid-October, the apparent collapse of the U.S. dollar in the foreign exchange market, and the formal recognition by the major international banks that their (...) losses on developing country loans would amount to at least $250 billion. The key question at the end of that year was whether the world economy was moving into a period of inflation or deflation. This essay identifies three possible scenarios. First, the decline in the foreign-exchange value of the U.S. dollar would lead to a rapid increase in U.S. net exports, an excessively large increase in demand for U.S. goods, and a run on the U.S. dollar, which would prompt more contractive monetary policies from the Federal Reserve and an increase in interest rates on U.S. dollars. Second, an increase in U.S. net exports would offset the decline in domestic spending from the smaller fiscal deficit and the less rapid growth of consumer spending. Interest rates on U.S. dollar assets would fall, which in turn would facilitate the expansion of income, and the U.S. fiscal deficit would automatically decline. Or, third, a second stock market meltdown might cause consumer and investment spending to decline more than the increase in net exports, resulting in a recession and a decline in the inflation rate and interest rates. (shrink)

Although microfinance organizations are generally considered as inherently ethical, recent events have challenged the legitimacy of the sector. High interest rates and the excessive profitability of some market leaders have raised the question of how to define a fair profit level for social enterprise. In this article, we construct a fair profit framework based on four dimensions: profitability, social mission, pricing, and surplus distribution. We then apply this framework using an empirical sample of 496 microfinance institutions. Results (...) indicate that satisfying all four criteria is a difficult, although not impossible, task. According to our framework, 24 MFIs emerge as true double bottom line organizations. These MFIs are characterized by higher outreach to women, lower portfolio risk, and higher productivity in high-density environments such as South Asia. We argue that excessive profits can be better understood relative to pricing, the outreach of the MFI, and organizational commitment to clients in the form of reduced interest rates. (shrink)

Home births continue to constitute only a small percentage of all deliveries in the United States, in part because of concerns about their safety. While the literature is decidedly mixed in regard to the degree of risk, there are several studies that report that home birth may at times entail a small absolute increase in perinatal risks in circumstances that cannot always be anticipated prior to the onset of labor. While the definition of “small” will vary between individuals, and publications (...) vary in the level of risk they ascribe to birth at home, studies with the least methodological flaws and with adequate power often cite an excess death rate in the range of one per thousand.Home birth is, in that regard, but one example of patients’ choices and plans that sometimes carry increased risk or include alternatives that individual physicians feel uncomfortable supporting or recommending. Our intention in this opinion piece is not to advocate for or against home birth. Rather, we recognize that home birth is but one example of a patient choice that might differ from what a provider feels is in a woman’s best interests.In this article we will discuss ethical considerations in such circumstances using home birth as an example. We consider in this article how the ethical principles of respect for autonomy and non-maleficence can be balanced using, among other examples, the choice by some for a home birth. We discuss how absolute rather than relative risk should guide individuals’ evaluation of patient choices. We also consider how in some circumstances, the value and safety added by a physician’s participation may outweigh a potentially small increment in absolute risk that might result from a patient’s decision to deliver at home because of a perceived physician endorsement.We recognize, however, that doctors and midwives participating in choices they have not recommended, or may even believe will lead to or increase risk for adverse outcomes, presents dilemmas and raises important questions. When does respect for patient choice and autonomy become support for poor decision making? When is participation not respectful but enabling? Finally we discuss the role and responsibility of organized medicine in making all births as safe as possible. (shrink)

This paper models the game process of the value cocreation of enterprises based on evolutionary game theory. The factors influencing value cocreation are found through mathematical analysis. Taking iFLYTEK as an example, a representative enterprise of artificial intelligence in China, six factors affecting value cocreation are verified, which are the excess return rate, the distribution coefficient of the excess return rate, coordination costs in the system, the cost-sharing coefficient, imitation costs, and penalties. These six factors have a profound impact on (...) value cocreation in the ecosystem. Through the case study of iFLYTEK, it is concluded that innovation ecosystems can enable small- and medium-sized AI enterprises to grow. In order to build a sound ecosystem, we need to establish a mechanism to select partners, reduce the costs of cooperation, and strengthen the protection of intellectual property. At the beginning of the cooperation, it is necessary to establish a mechanism with clear responsibilities, rights, and interests. The conclusion is of great significance to the development of AI enterprises. (shrink)

Many private business relationships are increasingly characterized by claims that certain actions should not be permitted since particular right claims are involved. Such claims should be taken seriously, but are they always ethically legitimate? This paper analyzes one context, the use of age as a rating variable in the pricing of automobile insurance, where such claims are made. By identifying, evaluating and assessing the relevant basis for the differentiation, actuarial equity, it is concluded that there is an ethical basis for (...) such a practice. The analysis also provides an equivalent means for considering other such analogous claims where actuarial equity is involved. (shrink)

Usury originally and simply meant the practice of charging interest on loans. This practice was forcefully condemned and generally banned in both Ancient and Medieval times. Indeed, prohibitions against interest can be found in the traditions of all the major religions: Hinduism, Buddhism, Judaism, Islam, and Christianity – compare, for instance, the commandments of the Hindu lawmaker Vasishtha, and the biblical story of how Jesus cast the moneylenders out of the temple (Matthew 21:12). As interest started to (...) become socially acceptable, however, usury came to mean the charging of (legally or morally) excessive or exorbitant rates of interest, and this is also how it is commonly used today. Thus, although many people now may regard as usurious so-called payday loans – which sometimes come with up to 1,000 percent interest – we do not generally regard as usurious the normal bank practice of charging for loans at regulated interest rates. Modern Islam still contains a general prohibition against interest, however, and many countries still have at least partial usury laws – most often setting an upper limit on acceptable interest rates. (shrink)

ABSTRACTThe major credit rating agencies contributed substantially to the sub‐prime mortgage crisis by giving their highest rating to most of the collateralized debt obligations securities that were backed by these sub‐prime mortgages. Because the rating agencies are compensated by the issuers whose CDO bonds they rate, this relationship creates a prima facie conflict of interest, one that is compounded when the rating agency also consults for the issuers on designing the CDOs. While Congress and the Securities Exchange Commission investigate (...) possible wrongdoing, various reforms have been proposed. This article analyzes these conflicts of interest and the cognate corporate governance issues. It then categorizes and critiques several of the reform proposals—which range in severity from requiring more disclosure to the suspension of the rating agency's license. (shrink)

Value capture occurs when an agent’s values are rich and subtle; they enter a social environment that presents simplified — typically quantified — versions of those values; and those simplified articulations come to dominate their practical reasoning. Examples include becoming motivated by FitBit’s step counts, Twitter Likes and Re-tweets, citation rates, ranked lists of best schools, and Grade Point Averages. We are vulnerable to value capture because of the competitive advantage that such crisp and clear expressions of value have (...) in our private reasoning and our public justification. There is, however, a price. In value capture, we take a central component of our autonomy — our ongoing deliberation over the exact articulation of our values — and we outsource it. And the metrics to which we outsource usually engineered for the interests of some external force, like a large-scale institution’s interest in cross-contextual comprehensibility and quick aggregability. That outsourcing cuts off one of the key benefits to personal deliberation. In value capture, we no longer adjust our values and their articulations in light of own rich experience of the world. Our values should often be carefully tailored to our particular selves or our small-scale communities, but in value capture, we buy our values off the rack. In some cases – like decreasing CO2 emissions – the costs of non-tailored values are outweighed by the benefit of precise collective coordination. In other cases, like in our aesthetic lives, they are not. This suggests that we should want different values suited to different scales. We should want value federalism. Some values are perhaps best pursued at the largest-scale level, others at smaller scales. The problem occurs when we exhibit an excess preference for the largest-scale values – when we consistently let the universal metrics swamp our quieter interests. (shrink)

The Securities and Exchange Commission (SEC) sanctioned investor-paid rating agency Egan-Jones for falsely stating that it did not know its clients’ investment positions. The SEC’s action against Egan-Jones raises the broad question whether knowledge of clients’ investment positions creates a conflict of interest for investor-paid ratings. In an experimental setting, we find that investor-paid rating agencies are likely to assign credit ratings that are biased in favor of their clients’ positions, and that this effect is attenuated when the rated (...) company has a sophisticated investor base that is expected to scrutinize ratings. The effect is not conditional on the risk profile of the rated companies. Taken together, our findings suggest that a conflict of interest stemming from investors’ preferences is likely to bias ratings under investor-pays business models, but scrutiny by the company’s investor base can counteract this bias. (shrink)

In this article, the insertion of a two-staged highly interesting question in an online, survey-based field experiment is shown to produce better survey completion rate (i.e., decreases completion refusal by 8%) and sample representativeness (increases the number of moderate answer patterns by 12%) than a typical (same) highly interesting question at the beginning of a survey only. Using nonparametric tests and subgroup probability analysis, measured effects include survey completion rates, response bias and reported demographic differences. In regards to sample (...) representativeness, the results also raise questions about the sensitivity of the conventional practice of comparing early to late respondent means scores as a method of investigating nonresponse bias in marketing research. Alternative approaches to measuring potential non-response bias are compared with the tradition of comparing early-wave verses late-wave mean respondent differences. The results indicate that the conventional mean test fails to identify differences in nonresponse bias; the scores of highly interested or opposed respondents in the first waves produce equivalent means to the scores of the less interested or opposed respondents in the latter wave between the surveys (e.g., 1's and 5's vs. 2's and 4's, both averaging to 3's) that are identifiable through kurtosis and probability analysis. (shrink)

Teleosemantics asserts that mental content is determined by natural selection. The thesis is that content is fixed by the historical conditions under which certain cognitive mechanisms—those that produce and those that interpret representational states—were selectively successful. Content is fixed by conditions of selective success. The thesis of this paper is that teleosemantics is mistaken, that content cannot be fixed by conditions of selective success, because those conditions typically outnumber the intentional objects within a given representational state. To defend against this (...) excess, advocates of teleosemantics must attempt to privilege some conditions of success while ignoring others. This results in selective explanations that are ad hoc, thereby depriving teleosemantics of the virtues it hoped to inherit from the theory of evolution by natural selection, including its alleged naturalistic credentials. (shrink)

Human beings naturally care a great deal for themselves--and couldn't survive otherwise. As Aquinas observed, the drive for self-preservation is the first law of nature. Yet in the imperative of self-love, philosophers have also perceived a tacit threat. Plato reminds us that 'the excessive love of self is in reality the source to each man of all offences.' And so the inevitability of self- concern must be balanced with its manifest potential for harm. But how is such a reconciliation (...) possible? This collection brings tohether the efforts of twenty- three great thinkers addressing such themes as the nature of self-interest, its connection to benevolence and morality, and its implications for political theory. The philosophical results are rich and varied. Self-Interest is intended for philosophers, students, and anyone inclined to reflect upon a subject of such enduring importance and perplexity as the love of self. (shrink)

Sustainable development is a concern for countries, businesses and organizations sensitive to excess in terms of utilized resources. This is evident in international initiatives which aim to establish guiding principles for institutions to follow regarding what is considered to be socially responsible behavior, allowing for assessment and the identification of objectives. As higher education institutions, colleges and universities have a public responsibility to generate and transmit knowledge to society as a whole, as well as an economic and social responsibility regarding (...) resource management; hence the importance of specifically analyzing their socially responsible behavior. This paper introduces an initiative which has been implemented in the United States and Canada; one of its aims is to identify best practices in this field and obtain knowledge that allows for the creation and development of a guide to social responsibility adapted specifically to higher education institutions. The Sustainability Tracking, Assessment & Rating System (STARS) is an innovative initiative developed by the Association for the Advancement of Sustainability in Higher Education (AASHE), in which all higher education institutions in the United States and Canada are welcome to participate. Their analysis will allow us to determine which measurable aspects will become a part of the sustainability culture that is developing in the higher education institutions that participate in this initiative. Furthermore, it will allow us to highlight the ethical values that are being promoted among its special interest groups. (shrink)

This article discusses the legal concept of excessive use of force by analyzing a particular incident that took place in Israel in the summer of 1997: eighty families, faced with dire housing needs, squatted in vacant apartments in an immigrant absorption center in the town of Mevasseret Zion near Jerusalem. After a period of failed attempts to persuade the families to leave the apartments peacefully, the police moved to evacuate the families, and did so by use of massive force. (...) In the article I describe the violent measures used by the State, and analyze the media portrayal of the squatting and the evacuation. I argue that both these forceful measures and the media portrayal of the squatting and evacuation cumulatively took part in constructing the squatters as criminal deviants rather than political protesters. I claim further that we should understand the concept of use of force not only as a means to achieve certain ends by the state, but also as a mechanism through which the state constructs a social problem and presents it in a manner beneficial to its own interests. Excessive use of force, in this sense, is not just a disproportionate response to a real or perceived threat posed by an individual or group, but a means by which the state fosters a belief that the individual or group present some danger, which must be tackled through the use of a certain level of force. By drawing a line between the legitimate and illegitimate use of force, the state affirms its monopoly on violence, which ultimately can be used to suppress political resistance. (shrink)

SummaryAs a great deal of contemporary discussion reveals, there is an ongoing interest in determining the ethical and political relevance of Jacques Derrida's work. From standpoints deconstructive and otherwise, critics have tended to converge upon some version of a single question: What is the ethico-political significance of deconstruction? In this paper I shall aim to specify the difficulties of thus evaluating Derrida's work. The difficulties to which I refer stem largely from the inadequacy of established forms of critique to (...) evaluate the ethico-political impact of deconstruction. Rather than abandon such critique, I suggest that a close attention to what constitutes this disproportion is most productive here. Hence I shall argue that if one is to address issues of the ethical and political with regard to deconstruction, and not simply to insist from the outset on the very questioning mode which Derrida strives to interrupt, then another approach is needed. I shall propose that taking up Derrida's notion of ‘excessive’ responsibility attends not only to the main features of the Derridian problematic, but to the political and quasi-ethical aspect of his thinking. Most simply, if Derrida is successful in showing the supplementary structure of responsibility, such that responsibility can no longer be presented as an object or theme of knowledge, then it remains to explore the task of rethinking ethics and politics this initiates. (shrink)

In 2011, Hibbard suggested an intelligence measure for agents who compete in an adversarial sequence prediction game. We argue that Hibbard’s idea should actually be considered as two separate ideas: first, that the intelligence of such agents can be measured based on the growth rates of the runtimes of the competitors that they defeat; and second, one specific (somewhat arbitrary) method for measuring said growth rates. Whereas Hibbard’s intelligence measure is based on the latter growth-rate-measuring method, we survey (...) other methods for measuring function growth rates, and exhibit the resulting Hibbard-like intelligence measures and taxonomies. Of particular interest, we obtain intelligence taxonomies based on Big-O and Big-Theta notation systems, which taxonomies are novel in that they challenge conventional notions of what an intelligence measure should look like. We discuss how intelligence measurement of sequence predictors can indirectly serve as intelligence measurement for agents with Artificial General Intelligence (AGIs). (shrink)

Fixed-rate versions of rule-consequentialism and rule-utilitarianism evaluate rules in terms of the expected net value of one particular level of social acceptance, but one far enough below 100% social acceptance to make salient the complexities created by partial compliance. Variable-rate versions of rule-consequentialism and rule-utilitarianism instead evaluate rules in terms of their expected net value at all different levels of social acceptance. Brad Hooker has advocated a fixed-rate version. Michael Ridge has argued that the variable-rate version is better. The debate (...) continues here. Of particular interest is the difference between the implications of Hooker's and Ridge's rules about doing good for others. (shrink)

This chapter argues for deregulation of the credit-rating market. Credit-rating agencies are supposed to contribute to the informational needs of investors trading bonds. They provide ratings of debt issued by corporations and governments, as well as of structured debt instruments (e.g. mortgage-backed securities). As many academics, regulators, and commentators have pointed out, the ratings of structured instruments turned out to be highly inaccurate, and, as a result, they have argued for tighter regulation of the industry. This chapter shows, however, that (...) the role of credit-rating agencies in achieving justice in finance is not as great as these commentators believe. It therefore argues instead for deregulation. Since the 1930s, lawgivers have unjustifiably elevated the rating agencies into official, legally binding sources of information concerning credit risk, thereby unjustifiably causing many institutional investors to outsource their epistemic responsibilities, that is, their responsibility to investigate credit risk themselves. (shrink)

abstract Microcredit is often hailed as an effective way of alleviating poverty. In recent years, however, microfinance institutions have been the target of much criticism due to their comparatively high interest rates (which may be as high as 70–100% per annum). This paper discusses whether it can be morally justified to charge very high rates of interest when lending money to the poor. Arguments are drawn from contemporary as well as historical debates on usury, exploitation, egalitarianism (...) and consequentialism. It is conceded that it would be preferable if interest rates could be reduced, but it is argued that typical microlenders today do nothing wrong in setting their rates at the current levels. Instead the responsibility rests on governments, commercial banks and overseas investors to facilitate an environment where rates could be reduced. (shrink)

Concern for the rapidly growing scale and intensity of the human exploitation of the environment, in particular the alienation of natural ecosystems, but also resource exhaustion, pollution, and congestion, leads one to wonder about the short time. horizons allowed for in decision making. Time preference is dictated by the rate of interest, allowing in practice a horizon often not exceeding several decades. I argue that this is unsatisfactory. Some minimal social rate of discount should not be enforced. Instead, it (...) is more feasible to set absolute environmental standards, thereby introducing quantity constraints on our decision making, within which time preference can be permitted to find its own level. This acknowledges that the myopia of human vision may not be a flaw but rather a biological design which has served us weIl in evolution. It may, therefore, be better to change the rules by introducing self-imposed collective constraints than to try to change the shortsightedness of people in their day-to-day grass-roots decision making. (shrink)

ObjectiveThe aim of this study was to investigate possible associations between obstructive sleep apnea and fatigue. This naturally led to considering the association between OSA and excessive sleepiness, depression, and anxiety.BackgroundOSA is a highly prevalent sleep disorder, associated with a risk of hypertension, cardiovascular events, daytime sleepiness, poor cognitive function, and sudden death during sleep. Both excessive sleepiness, fatigue, and symptoms of depression are frequently reported.Method5,464 patients referred to a university hospital for obstructive sleep apnea underwent standard respiratory (...) polygraphy. The severity of OSA was defined as either mild, moderate, or severe, using the apnea–hypopnea index. Validated questionnaires were used to assess excessive sleepiness, pathological fatigue, depression, and anxiety.ResultsNearly 70% of the patients were men, and median age was 50 years. One in three had moderate-to-severe OSA. Excessive sleepiness and pathological fatigue were present in 43 and 39%, respectively. The prevalence of possible depression and anxiety was 19 and 28%, respectively. The proportion of patients with male sex, obesity, and excessive sleepiness increased with the severity of OSA. In contrast, the proportion of patients with pathological fatigue did not increase with OSA severity, and there was a decrease in depression and anxiety with increasing OSA severity.ConclusionOur study reports that pathological fatigue, as well as anxiety and depression, did not increase with OSA severity, whereas excessive sleepiness did. Knowledge concerning conditions related to OSA severity may be indicative of pretest probability of OSA and thus change the priority for polygraphy. Furthermore, the high prevalence rates of fatigue, anxiety, and depression among these patients warrant further investigations. (shrink)

Concern for the rapidly growing scale and intensity of the human exploitation of the environment, in particular the alienation of natural ecosystems, but also resource exhaustion, pollution, and congestion, leads one to wonder about the short time. horizons allowed for in decision making. Time preference is dictated by the rate of interest, allowing in practice a horizon often not exceeding several decades. I argue that this is unsatisfactory. Some minimal social rate of discount should not be enforced. Instead, it (...) is more feasible to set absolute environmental standards, thereby introducing quantity constraints on our decision making, within which time preference can be permitted to find its own level. This acknowledges that the myopia of human vision may not be a flaw but rather a biological design which has served us weIl in evolution. It may, therefore, be better to change the rules by introducing self-imposed collective constraints than to try to change the shortsightedness of people in their day-to-day grass-roots decision making. (shrink)

ABSTRACT By means of the high ratings that they awarded to subprime mortgage‐backed bonds, the three major rating agencies—Moody's, Standard & Poor's, and Fitch—played a central role in the current financial crisis. Without these ratings, it is doubtful that subprime mortgages would have been issued in such huge amounts, since a major reason for the subprime lending boom was investor demand for high‐rated bonds—much of it generated by regulations that made such bonds mandatory for large institutional investors. And it is (...) even less likely that such bonds would have become concentrated on the balance sheets of the banks, for which they were rewarded by capital regulations that tilted toward high‐rated securities. Why, then, were the agencies excessively optimistic in their ratings of subprime mortgage‐backed securities? A combination of their fee structure, the complexity of the bonds that they were rating, insufficient historical data, some carelessness, and market pressures proved to be a potent brew. This combination was enabled, however, by seven decades of financial regulation that, beginning in the 1930s, had conferred the force of law upon these agencies' judgments about the creditworthiness of bonds and that, since 1975, had protected the three agencies from competition. (shrink)