Why is finance so complex? Lisa Pollack at FT Alphaville mulls a question: “Why are we so good at creating complexity in finance?”
The answer she comes up with is the “Flynn Effect“, basically the idea that there is an uptrend in human intelligence. Finance, in this view, gets more complex over time because financiers get smart enough to make it so. That’s an interesting conjecture. Hey Econ bros, what exactly is the logic behind higher payments and interest to ppl with bad credit? - IGN Boards. The Dumbest Idea In The World: Maximizing Shareholder Value.