🎙️ Welcome back to Revise and Resubmit — and you're tuned in to the Weekend Book Review! I’m thrilled you’re here, because today we’re diving into a book that’s part science, part finance, and totally mind-expanding. Buckle up 📚⚡
English Podcast starts at 00:00:12
Bengali Podcast Starts at 00:18:38
This weekend, we’re cracking open a fresh title that landed in November 2024, published by none other than Cambridge Elements — Hydrodynamics of Markets: Hidden Links Between Physics and Finance by the brilliant Alexander Lipton.
Now, Lipton isn’t just any author. He’s the kind of person whose resume reads like a global tour of genius-level innovation. He’s the Global Head of R&D at Abu Dhabi Investment Authority, a Professor of Practice at Khalifa University, and a Visiting Professor at the Hebrew University of Jerusalem. Oh, and did I mention he’s also a Connection Science Fellow at MIT and serves on the Advisory Board at ADIA Lab? Yeah, that kind of impressive. 🧠🌍
So what does a guy with that brainpower do in his spare time? Apparently, he writes books that tie together hydrodynamics, Kelvin waves, and Black-Scholes models into one neat, dazzling mathematical framework. This book peels back the curtain on how the laws of physics—yes, those equations swirling in fluid dynamics and stochastic processes—are not just academic abstractions, but the very heartbeats of financial markets. 💸🌊
We’ll talk about how Lipton connects particles moving in random fields to the pricing of complex financial instruments like Asian options, volatility swaps, and even crypto-based AMM hedging. Yeah, this book goes there — from Newton and Kolmogorov to DeFi and decentralized risk. 🤯
But here’s what I want to know:
👉 Can we really use the flow of water and waves to predict the stormy tides of finance? Or is this just the next beautiful theory waiting for a crash?
đź’¬ A massive thanks to Alexander Lipton for giving us this intellectually delicious fusion of physics and finance.
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Let’s keep learning, questioning, and exploring these wild cross-disciplinary frontiers.
Catch you next weekend! đź’Ą
Reference
Lipton, A. (2024). Hydrodynamics of Markets:Hidden Links Between Physics and Finance. Cambridge University Press. https://doi.org/10.1017/9781009503129
Mukhopadhyay, M. (2025). Book Review of Hydrodynamics of Markets: Hidden Links between Physics and Finance: by Alexander Lipton, Cambridge University Press UK (2024). Hardcover. ISBN 978-1-009-50311-2. Quantitative Finance, 1–2. https://doi.org/10.1080/14697688.2025.2487101
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