The Money Formula - Dodgy Finance, Pseudo Science, And How
Mathematicians Took Over The Markets

Product Description

Explore the deadly elegance of finance's hidden powerhouse The Money Formula takes you inside the engine room of the global economy to explore the little-understood world of quantitative finance & show how the future of our economy rests on the backs of this all-but-impenetrable industry Written not from a post-crisis perspective but from a preventative point of view this book traces the development of financial derivatives from bonds to credit default swaps & shows how mathematical formulas went beyond pricing to expand their use to the point where they dwarfed the real economy You'll learn how the deadly allure of their ice-cold beauty has misled generations of economists & investors & how continued reliance on these formulas can either assist future economic development or send the global economy into the financial equivalent of a cardiac arrest Rather than rehash tales of post-crisis fallout this book focuses on preventing the next one By exploring the heart of the shadow economy you'll be better prepared to ride the rough waves of finance into the turbulent future Delve into one of the world's least-understood but highest-impact industries Understand the key principles of quantitative finance & the evolution of the field Learn what quantitative finance has become & how it affects us all Discover how the industry's next steps dictate the economy's future How do you create a quadrillion dollars out of nothing blow it away & leave a hole so large that even years of quantitative easing can't fill it & then go back to doing the same thing? Even amidst global recovery the financial system still has the potential to seize up at any moment The Money Formula explores the how & why of financial disaster what must happen to prevent the next one