Emanuel Derman on Theories, Models, and Science
EconTalk
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Navigating Financial Uncertainty
This chapter explores the challenges of applying scientific theories from physics to finance, emphasizing the limitations of traditional financial models, especially in times of crisis. The conversation delves into ethical considerations in economic decision-making, the impact of bailouts, and the cultural norms that influence judgment in the financial sector. Through discussions on education and the complexities of the finance industry, the speakers provide insights for students on balancing theoretical knowledge with real-world unpredictability.
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