Timmy elsewhere

At the ASI.

Black Scholes really didn’t cause the financial crisis.

2 thoughts on “Timmy elsewhere”

  1. Chackrabortty did n’t imply that Black/ Scholes caused the crash of 2008 ;their mad scientist formulae caused the earlier Long Term Capital Management crisis . Chackraborrty aims his critique at the whole notion of Economics as a predictive science which was first raised pre Crash by the Sorbonne students of 2000 who complained their syllabus required them to examine, not real world Economic problems but tedious mathematical solutions with silly formulae to problems in” imaginary worlds”.
    Your whole I’m the only person round here to got to the LSE schtick does n’t cut much ice when you don’t know that banks create money.

  2. DBC Reed, didn’t hear the programme so can’t comment on that. But the last para, is that just an ad hom or is there a point?

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