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>The problem is finance is so unnecessarily complex I have no idea what's going on. You're not wrong but you're not making any measurable claims. If you want t
by Excel_Wizard 7y ago
>The problem is finance is so unnecessarily complex I have no idea what's going on.
You're not wrong but you're not making any measurable claims. If you want to understand what complexity is "necessary" you should define necessary a bit better for the purpose of discussion. If necessary means "required for the individual stakeholders in the financial enterprise to achieve their goals" that is a productive starting point. If necessary means "required so people are happy" that is a quagmire.
- crimsonalucard 7y agoI’m not even the guy who made the term necessarily complex. I used the term overly complex. You should probably ask the initial replier to my statement to define it as he introduced the term, not me. That being said if finance serves to achieve certain goals I assume necessarily complex means a minimal set of rules and concepts that serve to achieve said goals. Overly complex means a system with way more rules and concepts necessary to achieve a certain goal. I cannot pinpoint definitively what the overall goal of finance is. Like how it is with everyone else, the notion is vague and complex. I would love to make meAsurable claims but it is hard to do so in a topic that is relatively unmeasurable. What is the measure of complexity in finance? I don’t know. The starting point established here is the best I can come up with. If you can do better by all means do so, I would love to hear more on the science and statistical measurements of complexity in finance.