Rise and Fall of London Interbank Offered Rate (LIBOR)- A Transition in Global Financial System

Man’s fascination for numbers is as old as mankind itself. When the earliest humans settled together as tribal societies, a man with a sense for numeric alone could successfully calculate strength of rival tribes. The relative numbers in battlefield determinants of which tribe survived and who got annihilated. As civilization advanced, structured number system developed along with greater application of arithmetic’s and geometry. Usage of numbers and shapes moved beyond calculating the odds of battle-victory. Ambitious construction projects by various kingdoms necessitated immaculate understanding of numbers. Archimedes, the Greek mathematician in 3rd century BCE devised the key constant pi – the ratio of circumference of circle to the diameter. The importance of numbers grew with every onward leap of human civilization and continues to this day. It is not just humans but Gods themselves who have keen instincts for numbers. The golden ratio, also known as divine proportion, is a commonly found ratio in nature right from flower petals, shells to even human body. Among many important numbers which aid discovery, pique curiosity and impact the modern day man, the London Interbank Offered Rate (LIBOR) is the most prominent one in the global economy.