Father of Finance | Modernization and Implementation

Arkhat Zhumadilov

August 8, 2022

Father of Finance

Father of finance have been claimed through many people. There is one man who is more influential than the others, though: Richard Thaler. This article will discuss the role each one played in the development of modern finance. In addition, we’ll look at a few of their achievements. Listed below are the most important men who shaped the world of finance.

Alexander Hamilton

Although his career as a politician was largely marked by his support for British foreign policy, Hamilton was also a proponent of a strong central government, which was far stronger than the government established by the Constitution. He also connected the democratic impulse with the danger of anarchy. His philosophies of finance and government policy remained touchstones in modern American capitalism. Though Hamilton may be considered the father of finance by many, he was more of a “liberal” economist and a friend of the capitalist movement than an “ideacrat,” as many people have come to call him.

Despite being a man of limited means, Hamilton had many skills that would prove to be helpful to him in his work as a politician. His writing ability gave him a distinct advantage over his political opponents, and he had a thorough understanding of both theoretical and practical aspects of finance. As a result, his ideas contributed to the long-term development of America. His legacy is one of great importance. The Buttonwood Group and the Hamilton Foundation have been named in his honor.

Eugene Fama

Today, Fama is a member of Dimensional’s Investment Research Committee. He advises Dimensional on many investment strategies, including index funds. Fama is also a frequent speaker at conferences. Fama was born in 1931 and attended Tufts University, where he earned his bachelor’s degree. He then went on to earn an MBA and PhD from the University of Chicago Booth School of Business. In addition, he holds doctorate degrees from the University of Rochester, DePaul University, and the Catholic University of Leuven. He also serves as an advisory editor for Journal of Financial Economics.

Adam Smith

Formulation of Finance, Adam Smith, the theory of the invisible hand to guide the forces of supply and demand in an economy. This theory assumes that humans act according to a natural logic and that social and political behavior follows a similar rule. Therefore, economic acts also follow natural logic. Smith says that human society is as natural as its members. His most influential work, The Wealth of Nations, explores the concept of the invisible hand and the relationship between free markets and the division of labor.

Smith’s Wealth of Nations and Theory of Moral Sentiments are both important texts in the development of modern economics. Many economists, lawyers, and philosophers still use his ideas today. And while we might disagree on what they say, Smith’s work remains relevant to current debates.

Richard Thaler

Many credit Richard Thaler with developing the idea of behavioral finance. He started out by co-founding Fuller and Thaler Asset Management. But it wasn’t until 1995 that he drew the attention of mainstream economists. In that time, he developed the Prospect Theory and embraced behavioral economics and psychology.

Since the 1980s, Thaler has been studying the factors that affect financial decision-making, including the psychological factors that drive our decisions. His research has revealed three major factors: our perception of fairness and reasonableness, our tendency to overestimate the effects of price, and our lack of self-control. This work has influenced many areas of economic research and policy. To understand why, take a look at the following examples.