Journal Article

Economic History: The Birth of Modern Finance


Abstract: Since the 1950s, a series of theories and models have come to largely define financial and investment practices, transforming a trial-and-error practice into a quantitative academic field. Collectively, these innovations have become known as modern financial theory. If you have ever invested in an index fund or diversified your portfolio, as is the case for many Americans, you have benefited from modern financial theory.

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Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Econ Focus

Publication Date: 2025-08-12

Volume: 25

Issue: 3Q

Pages: 8-11