# Open questions in Financial System

how to separate Behavioural and Informational aspects of the markets?
[Humans entangle information and liquidity by making efficiently inefficient markets](https://knowen-production.s3.amazonaws.com/uploads/attachment/file/2084/grossman_stiglitz__1980_%2Bon%2Bthe%2Bimpossibility%2Bof%2Binformationally%2Beficient%2Bmarkets.pdf) ... see Stiglitz-Grossman 

## Bouchaud and Potters - data-driven understanding of human behaviour. 

Crowding and collective narratives - Ben Hunt and Schiller. Avoid model overfitting



## [Liquidity and Tail risk and excess returns](https://knowen-production.s3.amazonaws.com/uploads/attachment/file/725/Bouchaud%2Bskewness%2Band%2Brisk%2Bpremium%2B-%2Bextended%2Bpaper.pdf)

and see [Outstanding issues on liquidity](https://knowen.org/nodes/24537?path=1-616-620-24537)

what is the problem of liquidity? Multiple formulations!?
see for instance, [Eric Weinstein - polymath](https://knowen.org/nodes/26066)

## Complexity paradox

[There is thus a bizarre paradox in the 21st century world:](https://core.ac.uk/download/pdf/6612179.pdf) namely while the global system is becoming more interconnected in some senses, the level of mental and structural fragmentation remains very intense.

## [The liquidity paradox](https://www.citivelocity.com/rendition/eppublic/uiservices/open_watermark_pdf?req_dt=cGRmTGluaz1odHRwcyUzQSUyRiUyRmlyLmNpdGkuY29tJTJGOG9FWHdzVHphaGM0V1NEZzhWS0VpaENDcW9ZVFVkY0JuMUtVTHB6cEFV)

## Wealth and Society & Pension crisis

- [Colloquium: Statistical mechanics of money, wealth, and income - 2009 - Victor M. Yakovenko, J. Barkley Rosser](https://arxiv.org/abs/0905.1518)
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[**Dark Matter's Not Enough** - with Andrew Pontzen](https://www.youtube.com/watch?v=GFxPMMkhHuA)
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- [Unfunded Pensions & Retirement Crisis (w/ Brian Reynolds) | Real Vision](https://www.youtube.com/watch?v=k9_bWbrYPKg)

see also Aaaron Brown on the topic
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- student loans?⏎
- USD and EM crises?

## [Passive investing bubble](https://knowen.org/nodes/25916?path=19-810-25322-25738-25850-25916)

- Feedback Loops?

## Financial repression or REAL rates INFLATION?

[Narrative-Flows-Liquidity-Volatility FEEDBACK loop](https://knowen-production.s3.amazonaws.com/uploads/attachment/file/4144/JPM_Market_and_Volatilit_2019-01-16_2884690.pdf)

## [Short-run versus long-run paradox](https://knowen.org/nodes/24890?path=1-24392-24458-24890)

a paradox - not enough statistics but HOW to figure out an EDGE from short-run FOR the long run

## MT notes

[Information and Liquidity - smart networks](https://knowen.org/nodes/25850)
[ information-rich "implied order book](https://knowen.org/nodes/26266)


# Parents

* Finance
* Practical Economics
* Finance⏎