Open Yale CoursesECON 252: Financial MarketsLecture 3 - Technology and Invention in Finance<< previous session | next session >>Overview:Technology and innovation underlie finance. In order to manage risks successfully, particularly long-term, wemust pool large amounts of risk among many, diverse people and overcome barriers such as moral hazard anderroneous framing. Inventions such as insurance contracts and social security, and information technology allthe way from such simple things as paper, and the postal service to modern computers have helped to managerisks and to encourage financial systems to address issues pertaining to risk. The tax and welfare system is
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