Monday, April 9, 2018

MFiM

Modular-Finance has practical applications across the Financial Spectrum....From Financial Planning ( design Thinking) To Investment management to business Strategy ( managing Exploration and Exploitation) to Policy Decisions...etc...

Tuesday, January 5, 2016

Economics and Capitalism.... The Road Ahead.... The Three keys to Capitalism 4.1...

"TO PROVIDE ANY USEFUL ANALYSIS and guidance for the development of capitalism in the years ahead, new economic thinking will have to satisfy three conditions. First, it will have to recognize that a market economy is not a static system in equilibrium but one that is constantly evolving. The most important and valuable feature of a competitive market system is its capacity for adaption in response to social, political, and technological change. The second key idea economists will have to accept is that effective government and dynamic private enterprise are symbiotic, not mutually exclusive. Strong government and strong markets are both necessary for the successful functioning of the capitalist system: The dream of creating a market system with no economic role for government ended on September 15, 2008. The third essential feature of the new economics, both as a cause and consequence of the other two, will be a focus on the inherent unpredictability of human behavior and economic events.


     The emphasis on unpredictability introduced by Keynes, Schumpeter, and Frank Knight will be a guiding principle of the new theories competing for leadership in the intellectual marketplace during the next phase of economic thinking. In the new economy emerging from the 2007 - 09 crisis, all participants will recognize that the markets and the government are both liable to be wrong. In a world where the future is indeterminate and depends on reflexive interactions between human behavior, expectations, and reality, the concept of a single correct model of how the economy operates, assumed by rational expectations, is an absurd delusion. In an indeterminate world, both economic and institutional decisions will have to proceed by a zigzag process of trial am error. Government policies, as well as market behavior and business expectations, will have to evolve continuously as the economic system adapts to the changing conditions that is created by its own behavior."

Hat tip ~ Anatole Kaletsky, Capitalism 4.0

Monday, January 4, 2016

The Future of Economics - "This Idea Must Die"

Economics today is a discipline that must either die or undergo a paradigm shift - to make itself both more broadminded and more modest. It must broaden its horizons to recognize the insights of other social sciences and historical studies and it must return to its roots. Smith, Keynes, Hayek, Schumpeter, and all the other truly great economists were interested in economic reality. They studied real human behavior in markets that actually existed, rather than making assumptions about disembodied representative agents and desocialized perfect markets of a kind that could not possibly approximate the real world. (185)