Trying To Inject Some Science Into Economics (Again)

Banks and brokerage houses employ a lot of physicists - it was a big fad of the last decade because the industry discovered that physicists knew how to make models and economists did not.But physicists don't understand economics and the behavior of people any more than economists do and it hasn't worked.  No rational model predicts that some trader will just go crazy and lose billions and automated schemes have been a disaster. Yet there is hope. read more

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