The Causes of Economic Inequality



The first in SPI’s series on Inequality


By: May Leung

Difference in income plays a role

One important factor contributing to different levels of wealth is people are paid different wages. There are several reasons why some people are paid millions while some merely earn minimum wage.

(i) Wages are determined by labor market

Wages are a function of the market price of skills required for a job . In a free market, the “market price of a skill” is determined by market demand and market supply. The market price of a skill, and


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Profit and Ethics in Short Selling: The Case of Muddy Waters


By: Winky T. Yang


As a short selling research firm, Muddy Waters (MW) earned its reputation by successfully revealing several fraudulent Chinese firms listed in the US. MW’s combination of short selling and equity research is a clever business model, necessary to satisfy the market’s need for research analysts/firms independent of sell-side companies. This article analyzes the profit and ethics of short selling by examining the roles of research analysts and short sellers. It concludes that each MW research report should be considered individually to determine the integrity of the research and therefore,


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Moral Cents

Financial EthicsMoral Cents is The Journal of Ethics in Finance, produced on a regular basis by the Seven Pillars Institute for Global Finance and Ethics. Click HERE to see the latest issues and read them in full.

Seven Pillars Institute for Global Finance and Ethics (SPI) and the Centre for Commercial Law Studies (CCLS) at Queen Mary University of London have a collaborative affiliation in their work on ethics, law, and regulation in finance. The goal of the collaboration is to foster a dialogue on important ethical policy issues affecting the financial services industry.

Read the Collaboration Announcement

Seven Pillars Institute for Global Finance and Ethics and IntegTree LLC have a collaborative affiliation. The two organizations plan to create online training programs in financial ethics and compliance management. The Programs will help financial institutions improve conformity with the law while also fostering ethical awareness.

Read the collaboration announcement.