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Book Review of "The Lie of Financial Markets: Mathematics, Price Signal and the Planet By: Nicolas Bouleau, Reviewed by: Abderrazak Said Belabes مراجعة علمية لكتاب: "أكذوبة الأسواق المالية: الرياضيات والإشارات السعرية ومصير الأرض من الناحية البيئية" لنيكولا بولو، باريس: منشورات لاتوليي، 2018م - مراجعة: عبدالرزاق سعيد بلعباس

Author

Listed:
  • Abderrazak Said Belabes

    (Associate Professor, Islamic Economics Institute, King Abdulaziz University, Jeddah, Saudi Arabia)

Abstract

The book raises a fundamental question about the reality of price signal in the global financial markets on which the neoclassical discourse is based: Can it be considered as basic information in the analysis of facts and the formulation of economic policies to limit the unequal distribution of incomes and damage to the environment? The book shows that directing economy through price signal is just a lie. Volatility is an intrinsic characteristic of financial markets that generate a smoke and hides major price trends and externalities which negatively affect people's lives. The book explains how the application of advanced mathematical theories has enhanced the ability to master the advantage of price differentials. The more the degree of sophistication increases, the more the application approximates theory. The mathematical modelling used in the financial world is not just a description of what happens, it is performative. This raises an ethical question that is rarely noticed: What mathematics should we be preoccupied with? For whose benefit? يطرح الكتاب سؤالاً جوهريًا عن حقيقة الإشارات السعرية في الأسواق المالية العالمية التي يرتكز عليها الخطاب النيوكلاسيكي: هل يمكن التعويل عليها كمعلومة أساسية في تحليل الوقائع ورسم السياسات الاقتصادية للحد من التوزيع غير العادل للدخول والإضرار بالبيئة؟. ويبيّن الكتاب أن توجيه الأسواق المالية للاقتصاد من خلال الإشارات السعرية هي مجرّد أكذوبة، فالتقلب هو خاصية ذاتية للأسواق المالية تثير دخانًا يخفي الاتجاهات الكبرى للأسعار والآثار الخارجية التي تؤثر سلبًا على حياة الناس. ويشرح الكتاب كيف أن تطبيق النظريات الرياضية الأكثر تقدمًا قد عزز القدرة على التفنن في الإفادة من فوارق الأسعار، فكلما زادت درجة هذا التفنن، كلما اقترب التطبيق من النظرية، مما يظهر أن النماذج الرياضية التي تستخدم في عالم المال ليست مجرّد وصف لما يحصل، وإنما هي موجهة للسلوك. وهذا يطرح مسألة خُلقية قلما يُنتبه لها: ما هي الرياضيات التي ينبغي أن ننشغل بها؟ ولمصلحة من؟

Suggested Citation

  • Abderrazak Said Belabes, 2018. "Book Review of "The Lie of Financial Markets: Mathematics, Price Signal and the Planet By: Nicolas Bouleau, Reviewed by: Abderrazak Said Belabes مراجعة علمية لكتاب: "أكذوبة الأسواق المالية: ," Book reviews and book reports published in the Journal of King Abdulaziz University: Islamic Economics. 723, King Abdulaziz University, Islamic Economics Institute..
    • Handle: RePEc:abd:jkaubr:723
    DOI: 10.4197/Islec.31-3.10
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    More about this item

    Keywords

    financial markets; volatility; risk; arbitrage pricing theory; performativity. الأسواق المالية، التقلبات، المجازفة، النظرية الرياضية للمفاضلة، توجيه السلوك.;
    All these keywords.

    JEL classification:

    • B26 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Financial Economics
    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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