The Future of Finance
Journal of Investment Management (JOIM), Second Quarter 2010
Posted: 11 Jul 2010
Date Written: July 9, 2010
The future of finance is bright, if for no other reason, because our financial system failed. This failure raises the level of urgency for developing more realistic models, more effective regulation, and more responsible financial institutions, and it permits us to start with a clean slate.
Keywords: Central clearing corporation, credit default swaps, systemic failure, moral hazard, claw-back provision, operating leverage, Brownian motion, partial differential equation, ordinary differential equation, first passage probability, barrier options, Mahalanobis distance, network theory
JEL Classification: G00
Suggested Citation: Suggested Citation