Tag Archives: London

Economists, Quants and Traders

When I started working in finance as a fixed income analyst I realised I had some insight about the macro and the political drivers of financial markets, but I knew very little about finance, formally at least, in the sense I had never really studied it. More importantly, as I came to realised reading financial markets-trader oriented media, I knew nothing about what or how the market itself thought about how it worked. Having been trained in New Keynesian economics, I was accustomed to rational agents, micro-founded models and what I would otherwise describe as the rational  choice approach to social sciences. What I eventually realised was that quants and traders couldn’t really care less about those things. Quants looked at probabilities mainly and traders used technical analysis for the most part. So what are their relationships?

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