by Tyler Cowen
on November 24, 2008 at 3:16 pm
1. The origins of the Great Depression
2. Kiyoshi Ito, of Ito’s Lemma (recommended link), passes away.
3. Price Fishback on massive fiscal stimulus.
4. Claims about recommender systems
5. Don’t wash your hands with soap and water
Parker is the single most objective analyst of the depression and especially of the 1933-1940 recovery.
My favorite point that he makes is that Friedman demonstrated that Fed policy did not change policy after 1933. The expansion of the money supply was due to FDR monetizing the increase in gold supply and that the Treasury had to fight a restrictive Fed throughout the 1933-1940 era.
Now we know why LOLCats is so popular …
John B. Chilton;
Well, there is the use of kittens, and there is a much sicker use, depending on whether you are willing to incorporate a specific type of necrophilia, the latter leading to a vicious cycle.
Frankly, I’d almost rather do that than have to watch those sections of Trainspotting again. Y’know, if a terrorist ever made me choose between them.
I suppose I could wash my hands afterwards.
Kiyoshi Ito was an excellent mathematician and an honorable man
by all accounts. It is too bad that his lemma was misused to serve
as the basis for the pricing of options and derivatives via the
Black-Scholes formula. The problem is that it models stochastic
processes whose variability is characterized solely by variance.
As is well known now, pretty much all financial asset returns
exhibit kurtosis as well as variance, the latter insufficiently
characterizing what is involved. While practitioners have moved
on to more complicated variations on the formula, reality has managed
to remain a step or two ahead, and Ito’s Lemma is a far too simple
basis for a solution.
In this way, you can buy and gain very cheap FFXI gold.
where can i find more?
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