Sunday, May 8, 2016

Modern Finance Theory...

The most recent crisis, however, has allowed critics to gain a hearing; new ideas—either more scientific, in that they are based on empirical data, or on the contrary, arguing that economics and finance should be placed back in the realm of the social sciences—are beginning to be discussed seriously.
As Professor Lo (2012) wrote:

The recent financial crisis has exposed some serious gaps in our understanding of the global economy, and the need to take stock and get our academic house in order has never been greater. This presents us with a precious opportunity to make wholesale changes to our discipline that would otherwise be impossible, so we should delay no longer. (p. 48)

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