True, the Great Financial Crisis of 2008 was largely a failure of mathematical modeling and faulty statistical assumptions. But even more, it was a failure of some very sophisticated financial institutions to think like physicists. Models – whether in science or finance – have limitations. They break down under certain conditions. And in 2008, sophisticated models fell into the hands of people who didn’t understand their purpose – and didn’t care. It was a catastrophic misuse of science.
The solution, however, is not to give up on models. It's to make them better and more elegant. In this interview, Weinstein reveals many creative ways that physics and more sophisticated forms of math can be used to rescue economics from itself and restore its now tarnished reputation.