ABSTRACT
This chapter focuses upon ethical, responsible behaviour because it is vitally important as part of the process that can resolve the fundamental, and some less major, shortcomings of an unfettered market capitalism system. Regulation cannot efficiently replace ethical behaviour in a well-functioning economy. Economics provides us with a strong set of tools. As they are strong, it is to be used carefully. One cannot use it to try and prevent recessions or to ensure that everyone makes a profit on their house and stock market investments. The purpose of effective economic law cannot be to micromanage firms and other institutions. Instead, the legal and regulatory framework should encourage good behaviour, discourage undesirable behaviour and prohibit bad behaviour. Finally the chapter also presents an overview of key concepts such as limits to markets, Ecstasy Economics, issue of management, about ethics and economics, globalisation and free trade, macroeconomics and policy formulation that are discussed in the subsequent chapters of this book.
