InFi: the Future of Finance Ep. 116: Eric Weinstein on the Application Gauge Theory to Economics
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Dec 5, 2025 
Eric Weinstein, a mathematician known for his pioneering ideas in applying gauge theory to economics, joins to unravel complex economic concepts. He discusses the misframing of economic problems and the potential of a second marginal revolution. With engaging analogies, he illustrates the importance of path dependence in economic outcomes, critiques traditional measures like the CPI, and suggests innovative methods for understanding inflation. Weinstein advocates for a refreshed approach to economics that integrates modern mathematics for better policy implications.
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Economics Is Inherently Gauge Theoretic
- Economics already uses gauge-theory-like ideas and needs an upgraded differential calculus to handle marginalism properly.
- Replacing the naive derivative with a bespoke, economic derivative can enable a second marginal revolution in economics.
Divisia Index And Path Dependence Make Sense
- The Divisia index emerges naturally when you use the correct economic derivative and higher-frequency chaining converges to it.
- Path dependence (curvature) is a feature, not a bug, and encodes economically meaningful information.
Markets Already Embrace Curvature
- Financial markets already accept path dependence; portfolio performance depends on the trading path, not just endpoints.
- The same mathematical curvature explains both market behaviour and consumer index path dependence.
