Fibonacci numbers in nature and in finance

My favorite econ blogger, George Mason University’s Russ Roberts, posted the following (short, less than 4 minutes) video called “nature by numbers” yesterday on Cafe Hayek.  This video provides a remarkable and beautiful presentation concerning how Fibonacci numbers appear in nature. 

For more information concerning the math used in this video, go here.  Peter Bernstein (author of the worldwide best seller “Against the Gods: The Remarkable Story of Risk”) traces the origins of risk theory and finance back to a 13th century Italian mathematician by the name of Leonardo Pisano, who was known for most of his life as Fibonacci (see pages 23–26 from Bernstein’s book for historical context on the Fibonacci number series).  For some examples of applications of Fibonacci numbers in finance, go here.

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