The Anti-Abenomics Bet on the Japanese Yen

The video discusses the impact of Abenomics on the Japanese yen, exploring the concept of volatility in currency markets. It delves into the volatility smile and its connection to behavioral finance, highlighting how people's biases affect financial decisions. The discussion shifts to the challenges posed by Kiwi and negative interest rates on traditional financial models, particularly the Black Scholes model. The video concludes with a look at the limitations of Gaussian models and the search for 'white swans' in investment strategies.

What role do behavioral economics and finance play in understanding market volatility?

In what ways did the financial crisis challenge the use of bell curve models?