ABSTRACT
It has been suggested by Peters (1989, 1994) of PanAgora Management, that to understand financial turbulence, the dynamics of cash flows between the various market participants, within and between different asset markets, should be measured, identified and analyzed more carefully. Although there exists not yet a complete theory of physical turbulence, let alone of financial turbulence, many parallels between the two have been noted by Mandelbrot (1972, 1997, p. 43), as we observed earlier in Chapter 8 and aswe’ll discuss in greater detail in Chapter 11.
