Financial Complexity Book Video 2018-09-02T20:21:41+00:00

Financial Complexity Book Video

This video gives an overview to the content of our ebook “Financial complexity & Nonlinear Dynamics” a collaboration between Complexity Labs and Fasanara Capital, You can download the full ebook by clicking the link below. Since the financial crisis, much of economic and financial theory has been called into question. We are increasingly recognizing the limitations of the many kinds of financial models that are dependent upon assumptions of linearity and equilibrium; that agents are rational and independent, and that the future will on aggregate, generally resemble the past. This is indeed an exciting time for economics and finance, as after almost two centuries of studying equilibrium solutions created by averaging over rational actors, economists are beginning to study the emergence of non-equilibria and the general evolution of patterns in the economy. That is, we are starting to study the economy and financial markets as complex systems out of equilibrium and increasingly doing this through a computer-based algorithmic approach. This changing paradigm of complexity is already proving critical to rethinking financial theory. The science of finance is young and is changing fast, but by integrating complexity theory we believe that it may well be key to actually studying finance as a science in a much more realistic way than we have done in the past.

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