Satyajit Das: The Cultural Transformation of the World of Finance (4/6)

The transcript discusses the stability of distribution in statistical methods, highlighting how seemingly uncorrelated returns can become correlated during financial crises. It differentiates between exogenous and endogenous risks, emphasizing the role of policymakers in shaping financial confidence. The discussion includes insights from Hyman Minsky on financial instability and critiques the reduction of risk to a mere number, arguing that it oversimplifies complex assumptions.

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