Financial Surveys

Esperanto means in its own language: “one who hopes.” The euro is also introduced in relation to hope. Hope for a better financial world (limited to the Euro zone where it got introduced).

The Euro is a new currency that got introduced to end the exchange rate problems in the euro zone. One of such a problem is the continuous burden of transaction costs in inter-European transaction. To support the idea of a single European market a single currency was designed to lower the trade barriers between the member states.

Like Esperanto the Single Euro makes that people more easily understand each other in economic terms. When a real estate property has a price tag of 100,000 euros every user of the Euro will understand this value. The mechanism behind this understanding is that people — and this happens still today – will convert this figure to their previous currency and than only than really understand the value.

In Spain a lot of elderly people handle finance this way.

Unlike Esperanto, the Language of the Euro is much more focused and dedicated to only one area: finance. One could wonder whether the Euro or Esperanto would bring people more together. If people in Spain or Germany would talk Esperanto would that also mean that their cultures would diverge?
The Euro is implicitly designed to serve a political means. Without the euro the European union would probably have faced much more challenges in harmonizing politics. At least the Euro is something very visible that people from different states share.

Esperanto will never make it that far.

H.J.B.

Financial Markets (ECON 252) Statistics and mathematics underlie the theories of finance. Probability Theory and various distribution types are important to understanding finance. Risk management, for instance, depends on tools such as variance, standard deviation, correlation, and regression analysis. Financial analysis methods such as present values and valuing streams of payments are fundamental to understanding the time value of money and have been in practice for centuries. 00:00 – Chapter 1. The Etymology of Probability 10:01 – Chapter 2. The Beginning of Probability Theory 15:38 – Chapter 3. Measures of Central Tendency: Independence and Geometric Average 33:12 – Chapter 4. Measures of Dispersion and Statistical Applications 50:39 – Chapter 5. Present Value 01:03:46 – Chapter 6. The Expected Utility Theory and Conclusion Complete course materials are available at the Open Yale Courses website: open.yale.edu This course was recorded in Spring 2008.

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