1 - Finance and Maths
Paul Volker, Ex chairman of US Fed in 2010, after financial crisis declared that the only useful financial innovation in 25 years was ATM that helped people on the ground and others were of no use. He is the one who is credited for breaking the backbone of inflation in US as Fed Chairperson in early 80s. Robert Shiller, Nobel Laureate, tends to disagree. He says financial innovation is evolving and there could be some loopholes. It will get plugged as it evolves. Sure, the instruments are getting complex but we have sophisticated system to handle the complexity. He bats for more innovative products to plug the current loopholes. There are concerns expressed if top brains of a nation should be dedicated to finance industry in huge number rather than some other domain , say technology or healthcare. Any major project you can think of, be it railways, hospitals etc, is financed through equity/debt or held by Government. Even many privately held firm will have t...