Benoit Mandelbrot, the author of the epoch-making The Fractal Nature of Geomerty, recently released a tome entitled The (Mis)Behavior of Markets: A Fractal View of Risk, Ruin, and Reward.
This book challenges some of the first principles of economics and finance that underpin modern theory. If you’re a finance or a math geek, this book is for you. But there are also radical implications for politics contained in these shifts of the postualtes of financial theory.
Over the coming weeks, I will explore some of these implications including:
- How we finance the national debt
- Social security
- Regulation of corporations and the security markets
- The explosion of the efficient market theory and laissez-faire.
I believe that this work will form the economic basis of a new progressive ideology, much the same way that “butterfly” economics have.