Financial Futures: Quantum Computing Applications in Economic Modeling

Financial Futures: Quantum Computing Applications in Economic Modeling

by Elizabeth Mogopodi
Publication Date: 18/12/2024

Share This eBook:

  $10.99

Financial Futures: Quantum Computing Applications in Economic Modeling is a forward-looking guide to one of the most significant technological shifts in modern finance. Quantum computing is no longer theoretical—it's beginning to reshape how we model markets, manage risk, and make economic decisions. By using qubits—quantum bits that can exist in multiple states at once—these systems tackle problems far beyond the reach of even the most advanced classical computers.


Traditional economic models often struggle with today's complex, fast-moving markets. Quantum computing changes this by processing vast amounts of data in parallel, simulating thousands of scenarios simultaneously, and adapting in near real time. This enables more accurate forecasts, smarter portfolio optimisation, better pricing of complex financial instruments, and more robust stress testing of systemic risks.


At its core, quantum computing leverages principles like superposition and entanglement. Algorithms such as Grover's and Shor's—and specialised methods like quantum Monte Carlo and QAOA—offer powerful new tools for finance. Meanwhile, quantum machine learning can uncover subtle market patterns and improve fraud detection in ways classical AI cannot.


Security is also evolving. While future quantum machines could break current encryption, quantum cryptography—particularly Quantum Key Distribution (QKD)—promises virtually un-hackable communication, which could become essential for digital currencies and secure transactions.


Leading financial institutions are already experimenting with quantum software platforms like Qiskit and Cirq, testing applications in trading, risk modelling, and compliance—even without full-scale quantum hardware. Yet challenges remain: qubits are fragile, error-prone, and difficult to scale. Success will depend on hybrid systems, better error correction, and—crucially—a new generation of professionals skilled in quantum physics, computer science, and economics.


This book, offers finance professionals, economists, and researchers a practical introduction to quantum computing's potential. It covers core concepts, key algorithms, real-world applications in risk analysis and asset management, and strategic guidance on data preparation, model selection, and implementation. It also looks ahead to emerging advances in hardware, software, and quantum networking.


More than a technical manual, Financial Futures is a roadmap for those ready to embrace a new era—where finance becomes faster, more insightful, and fundamentally more resilient through the power of quantum computing.

ISBN:
9798230715184
9798230715184
Category:
Economics & Business
Publication Date:
18-12-2024
Language:
English
Publisher:
Elizabeth Mogopodi

This item is delivered digitally

Reviews

Be the first to review Financial Futures: Quantum Computing Applications in Economic Modeling.