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The Machine that Changed the World

Computers and modern finance entered the world together

Posted in 2007-08 Financial Crisis, History of economics Tagged with: , , ,

  The rivalry between Paul Samuelson and Milton Friedman continued to the 1970s, but it shifted to new ground – to developments in the rapidly-expanding field of finance.   Samuelson was an active contributor, both with the research he described as his “Sunday painting,” and as a market participant. Friedman was more reluctant convert, but still managed to have a major impact, as godfather to the Chicago risk markets. The new discipline was even quicker than the economics profession to adopt the Arrow tools and put them to practical use. Developments in finance unfolded apace with growth of the computer industry.