Technology and Invention in Finance - Financial Markets

Explore the intersection of technology, invention, and finance in this 75-minute lecture from Yale University's Financial Markets course. Delve into probability theory concepts and the central limit theorem before examining the crucial role of financial technology and innovation in managing significant risks. Discover how financial inventions are framed within societal contexts and function as complex devices that evolve over time. Investigate key financial innovations such as limited liability for corporations, China's Township and Village Enterprises framework, and inflation indexation from its 19th-century origins to 20th-century applications in Chile and Mexico. Conclude with an in-depth look at swap contracts and the development of credit default swaps, gaining valuable insights into the ever-evolving landscape of financial markets and instruments.

- Chapter 1. Introduction.
- Chapter 2. Review of Probability Theory and the Central Limit Theorem.
- Chapter 3. The Role of Finance in Society .
- Chapter 4. A Selection of Modern Inventions .
- Chapter 5. Corporations and Limited Liability.
- Chapter 6. Inflation Indexation .
- Chapter 7. Swap Contracts.