Sudip Bandyopadhyay’s Blog

The efficient markets hypothesis is the catwalk supermodel of economics.  Strutting down the runway in haute couture, catwalk supermodels present an elegant stylized vision of fashion that bears scant resemblance to the reality of buying clothes on the high street.
Through its failure in successive crises – the 1987 stock market crash, the collapse of Long-Term [...]

In Pablo Triana’s recent  book “Lecturing Birds on Flying” he suggests that probably Nobel Prize for economics should be abolished.  His assertion is that financial models such as value at risk (VaR), Black-Scholes-Merton (BSM) model have done more harm than good.  He goes on to say that “quantitative – finance” had a very large hand [...]