Sunday, May 20, 2012

Mathematics of New Financial Systems

That was the theme of the recent Hot Topics Workshop at the IMA in Minneapolis.

I was delighted to see many old friends doing some really interesting mathematics on relatively new topics, like systemic risk and stochastic portfolio theory.

My small contribution to the workshop was on the Keen-Minsky model for the dynamics of credit for the economy as a whole (see paper here). Because the workshop was open-minded by construction, many of the economists in attendance refrain from attacking the model too heavily, despite some of my provocative remarks (e.g "macroeconomics is too important to be left at the hands of macroeconomists").

All in all I came away encouraged and optimistic about the prospect of future contributions of mathematics to economics.

1 comment:

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