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I'm going to be honest, economics and finance has never been my strong suit. But a long time ago I did study a lot of math and one of the more intriguing parts
by trcollinson 9y ago
I'm going to be honest, economics and finance has never been my strong suit. But a long time ago I did study a lot of math and one of the more intriguing parts of mathematics was the theories by Paul Levy (alpha-stable distributions), Gaston Julia (patterns under iteration), and of course Benoit Mandelbrot (it's kind of hard to talk about one without talking about all three).
Mandelbrot is rather well known for the Mandelbrot Set. But interestingly he started his study down this path as he looked at markets and the apparent predicability in such a chaotic and unpredictable environment. He studied wool markets but extrapolated that out further to many financial markets and then economics as a whole. He would say that financial markets are anything but quite unpredictable, just that the models we use are rather wrong.
I would suggest checking out the book "The Misbehavior of Markets: A Fractal View of Financial Turbulence". It's quite good.