Don't blame the quants, says Merton
Quantitative models were unfairly criticised in the aftermath of the financial crisis, says legendary quant and co-creator of the Black-Scholes equation, but there’s plenty for quants to work on in the current environment
The future for quantitative finance is bright, as practitioners apply it to new areas like systemic risk management and retirement provision, according to Robert Merton, professor of finance at the Massachusetts Institute of Technology, speaking in a video interview with Risk.
Merton also warns that models are only as good as the humans that operate them, and critiques elements of the Basel Committee's fundamental review of the trading book capital rules.
Defending quants from critics that have
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