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"The shadow banking system is vastly bigger than regulators had thought, say econophysicists who have developed a powerful new way to measure its hidden impact"
by andyjohnson0 13y ago
"The shadow banking system is vastly bigger than regulators had thought, say econophysicists who have developed a powerful new way to measure its hidden impact"
I had to read this a couple of times before I realised what was wrong, but apparently "Econophysics" really is a thing:
"Econophysics is an interdisciplinary research field, applying theories and methods originally developed by physicists in order to solve problems in economics, usually those including uncertainty or stochastic processes and nonlinear dynamics. Its application to the study of financial markets has also been termed statistical finance referring to its roots in statistical physics." [1]
[1] http://en.wikipedia.org/wiki/Econophysics http://en.wikipedia.org/wiki/Econophysics
- contingencies 13y agoGeorge Soros knows a lot about financial systems. Strong evidence is the fact that he's rich and shares his perspectives, which are better than mainstream perspectives at interpreting market behavior particularly during major crises. My favourite quote of his is the oft-repeated notion that Classical economics is based on a false analogy with Newtonian physics. He generally spends some time either side of that comment making it really clear: there is no mystical market equilibrium of supply and demand, only the behavior of individuals.
- pierrealexandre 13y agoIn my opinion the following paper is a good and accesible primer on econophysics: JP Bouchaud - The (unfortunate) complexity of the economy http://arxiv.org/abs/0904.0805 http://arxiv.org/abs/0904.0805