<i>> About 10 years ago, in the wake of the 2008 financial crisis, the Nobel Laureate economist Paul Krugman made the same point with respect to economics and mathematics in an influential article titled "How Did Economists Get It So Wrong?" His main answer was: mistaking mathematical beauty for truth. "As I see it," wrote Krugman, "the economics profession went astray because economists, as a group, mistook beauty, clad in impressive-looking mathematics, for truth."</i><p>I appreciate the point the article is trying to make, but I think this example is shoehorned in. You can misuse math without it being because you're "seduced by the beauty" of it.<p>I do agree with the author's example in physics. I have seen a lot of beautiful math in physics; look at lie algebras, monstrous moonshine and representation theory. Quite a bit of modern physics PhD dissertations are actually just math dissertations, and the same holds for a significant amount of new research in the field.<p>On the other hand I haven't seen that in finance. Highly exotic (read: "beautiful") mathematics is extremely rarely used in financial engineering. Pricing derivatives is decidedly mundane work compared to the brain-meltingly abstract mathematics deployed in high energy particle physics research. That's not to say it isn't difficult - it is difficult! But difficulty is better described by the word "complex" rather than "beautiful", and then <i>of course</i> financial engineering is complex. Then we should be talking about how getting mired in complexity can be bad for accountability and transparency.<p>This is a different thesis than the one presented by the author. Being led astray because you've built extremely brittle financial products using layers of complicated math is <i>not</i> the same as being more preoccupied with the elegance of a grand unifying theory than its agreement with reality.<p>But hey, maybe I'm just being pedantic. You can misuse mathematics in a lot of ways.