27-01-2013, 06:30 PM
Join Date: Mar 2006
Modern Finance was founded by a Revolutionary Marxist
and here lies the answer to our mistakes Founding Father of the Quants Was Revolutionary Marxist - Bloomberg
One of the more interesting ironies of history is that the man who laid the foundation for modern quantitative finance began his career as a Marxist revolutionary. |
Jacob Marschak may not be a household name today, but he inspired a number of financial practitioners and thinkers, from Milton Friedman to Harry Markowitz, and his insights are now the backbone of trading strategies and computer algorithms worldwide.
Marschak was born to a Jewish family in Kiev, Ukraine, in 1898. He played a part in the Russian Revolution as a teenager, working as a Menshevik activist. The liberation of Ukraine from the czar’s Russian Empire vaunted Marschak into the position of labor minister of the short-lived independent state of Terek.
Within months, the state was absorbed by another region and then subsumed into the Soviet Union. A disillusioned Marschak fled to Germany, where he received training in the Austrian School of free-market economics. He hoped to make a permanent home in Germany, but when the Nazis came to power, the Jewish- radical-turned-Marxist-turned-Austrian-School-economist wisely left the country, moving first to England and then to the U.S., where he joined the New School in New York as part of an anti- fascist University in Exile.