How the Normal Distribution Keeps Crashing The Global Financial System

Manuel Brenner
11 min readFeb 11, 2024

The only normal people are the ones you don’t know very well.
— Alfred Adler

What is normal? Normal is conforming to a standard; usual, typical, expected. And what could be more normal than the humble normal distribution?

The normal distribution, also called Gaussian distribution after German mathematician Carl Friedrich Gauss (the Duke of Mathematicians) is everywhere, from the social sciences to the natural sciences to machine learning.