The Marginal Revolution Podcast

Dive into the fascinating history of options pricing, tracing its roots from early 1900s mathematics to the groundbreaking achievements of Black, Scholes, and Merton in the 1970s. Discover how this quest revolutionized modern finance and led to the establishment of the Chicago Board Options Exchange. The discussion spans the influence of early traders, the interplay of economic theories across cultures, and the profound impact of options theory on decision-making in various industries. Uncover how concepts of uncertainty shape our economic landscape today.

The discussion dives into the revolutionary ideas of new monetary economics, once considered fringe, highlighting thinkers like Fischer Black and Eugene Fama. Traditional measures of money supply are challenged as obsolete, while crypto and stablecoins reshape the landscape. Intriguing connections are made between fiscal and monetary policies, and the paradox of pegged currencies is examined. The role of AI in the future of cryptocurrencies is explored, raising questions on self-interested versus altruistic behaviors in finance. A thought-provoking reflection on the evolving complexities of our financial systems ensues.

Delve into the trillion-dollar insurance industry and its surprising impact on modern economies. Explore the evolution of life insurance and how societal perceptions shifted from repulsion to moral imperative. Discover the role of advanced mathematics in shaping insurance practices and the implications of moral hazard. Uncover historical practices from tontines to mutual aid in rural communities, and examine why certain risks are insured while others are overlooked. This conversation reveals how insurance reflects our attempts to navigate uncertainty.

The podcast dives into the tumultuous crime wave of the 1970s, exploring skyrocketing homicide rates and the public's growing fear. Discussions reveal how urban unrest and the terrifying rise of serial killers shaped society's perception of safety. Key moments include reflections on the impact of demographic changes and drug trade on crime. The conversation also warns against complacency, advocating for data-driven policing and reform amidst challenges like mass incarceration. It intriguingly connects historical crime trends to contemporary urban dynamics.

The discussion dives into the seismic oil price shocks of the 1970s that transformed global markets and U.S. energy policy. Experts analyze the rise of alternative energy and the lasting impact of price controls, as well as the role of OPEC and the Yom Kippur War. There's a fascinating look at how these events shaped Milton Friedman's economic theories amid rampant inflation. The conversation highlights the cultural shifts during the oil crises, showing the societal effects of long gas lines and resource misallocation.

This discussion dives into predictions for the upcoming Nobel Prize in economics. Potential winners like Michael Woodford and Susan Athey are highlighted, alongside overlooked contenders. The talk shifts to the essential role of data creators and even considers non-traditional nominees from the cryptocurrency world. Reflecting on missed opportunities and questionable past winners adds depth to the conversation. With AI's rise, the future of economic modeling and recognition in the field takes center stage.

Explore the ins and outs of 1970s inflation, a period marked by economic chaos and political shifts. Delve into the debates around Keynesian policies and the collapse of the gold standard. Discover how the Federal Reserve's independence shaped inflation control while facing energy shocks and global competition. Examining the cultural backdrop adds depth to the economic discussion, drawing intriguing parallels to today's inflationary landscape. Expect lively critiques and thought-provoking insights into how past policies inform current financial challenges.