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A MacIntyrean Perspective on the Collapse of a Money Market Fund

Author

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  • Andrea Roncella

    (Universidad de Navarra)

  • Ignacio Ferrero

    (Universidad de Navarra)

Abstract

This paper conducts an ethical analysis of the 2008 closure of a US money market fund entitled the reserve primary fund (RPF), which triggered the first run in the money market sector and a resultant liquidity crisis that harmed the entire US financial system. Although many academics and regulators have studied and written about RPF, the question whether the decision that caused the fund to collapse represented any ethical dilemma, has not been addressed to date. With this purpose in mind, the paper will examine the events that culminated in the closure of RPF according to Alasdair MacIntyre’s virtue ethics approach. In so doing, the paper aims to extend the applicability of MacIntyre’s concepts to the finance industry in general, and to provide a framework to predict and so potentially prevent crises like that exemplified by the RPF case.

Suggested Citation

  • Andrea Roncella & Ignacio Ferrero, 2020. "A MacIntyrean Perspective on the Collapse of a Money Market Fund," Journal of Business Ethics, Springer, vol. 165(1), pages 29-43, August.
    • Handle: RePEc:kap:jbuset:v:165:y:2020:i:1:d:10.1007_s10551-018-4078-9
    DOI: 10.1007/s10551-018-4078-9
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    2. Matthew Sinnicks, 2021. "“We Ought to Eat in Order to Work, Not Vice Versa”: MacIntyre, Practices, and the Best Work for Humankind," Journal of Business Ethics, Springer, vol. 174(2), pages 263-274, November.

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