chapter  2
42 Pages

Finance in Asia

One important test of a scientifi c claim is whether it can be disproven, something that can happen long after a theory in chemistry or physics has been accepted as truth (Popper 1959 ). The world of science thought for centuries that Newtonian physics contained universal truths, only to be shown their incompleteness by Einstein in the early twentieth century. We enjoy the study of fi nance enough to regard it as art and experimentation, so perhaps the maxim of disproof cannot be strictly applied here, but there is a paradox about fi nance and its place in the modern world that is almost as striking as Popperian logic. Two statements make it clear:

• Finance matters . This is shorthand for contemporary thinking about fi nance and generally refl ects the approach of this book.