Listen to Roman Frydman

I'm very glad that Roman Frydman's work is getting some much-deserved attention. Frydman and Michael Goldberg's work on "Imperfect Knowledge Economics" is first rate—the kind of stuff Nobels are made of. I've recommended Frydman and Goldberg's work before, but I only knew of their work because Frydman and his wife were both professors of mine way back in the day at NYU. It's nice to see their work getting a wider audience.

In his open letter to Gordon Brown and other leaders of the G-20, Edmund Phelps, the 2006 Nobel prize winner, even plugs Imperfect Knowledge Economics as the new conceptual framework upon which regulators should base future policy toward asset markets. That's wishful thinking, but policymakers would be well-advised to at least listen to Frydman. He knows of what he speaks.

For anyone with basic statistical literacy, I highly recommend Frydman and Goldberg's book, Imperfect Knowledge Economics: Exchange Rates and Risk.