The Impact of Financial Innovation

We could say that two events in 1973 changed financial markets. The CBOE (Chicago Board Options Exchange) starts trading. The Black-Scholes Model for pricing options (most simply the right to buy or s…

A One-Handed Economist?

Let’s not look at CDOs, SIVs, ARMs, TIPs or ATMs. Nor do we need specifically to consider credit default swaps, securitization, hedge funds or venture capital. Instead, we can go to the question…

New Financial Products

Instead of a garage or a laboratory, think of an office or a conference room. And, rather than a computer or an aircast, imagine a junk bond or a bank account.  All of these products, at one time…

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