It wasn’t long ago that field of finance came about. Finance branched off from economics right after World War II. Although it just recently came into its own, parts of finance have been around for many years. Before finance become what it is today, bankers or “moneychangers”, used similar but more complicated methods. An example being they often had to use more difficult forms of mathematics.
Risk is an important development to finance, it’s also very complicated. A part of its complexity is that there isn’t just one way to calculate risk. Over the years there have been many models and improvements to these models, used in attempt to figure out what the probability and risk of something really is. Those involved in finance have been able to basically perfect their field, mainly because of the many improvements to the equations that were made, along with technological improvements. The main technological improvement being the computer.
Not only is finance figuring out the probability and risks that come with money, it’s also getting those who do it paid. Because finance comes with a salary it has become something that people now desire. I think the number one reason anything would get into the world of the academy is if it can be something that makes money. Another reason for it being in the world of the academy is its complexity and not everyone can do it and do it well. I believe this to be a reason because, there is very few things in the world of the academy that comes easy to everyone.
Another factor that has allowed finance to become what it is, is the human fascination with money. Along with the human fascination of money there is a fascination with those who know a lot of it. The article makes a statement about people buying books on finance, and how people “are in awe of those who know-or profess to know- a great deal about the subject” (Chance pg 447). This I think is really important social factor, that has benefited finance. Especially because for anything to survive their needs to be some form of interest in it.
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