It wasn’t the Efficient Markets Hypothesis wot did it

posted by
December 28, 2011
Adam Smith Institute
by Tim Worstall  
Posted in Commentary

"It's been a common enough trope, that it was the Efficient Markets Hypothesis (EMH) that led to the crash. Usually put forward by those who don't understand what is being claimed, true. What it actually says is that markets are efficient at processing information about what prices should be in markets. What some seem to think it says is that 'markets are efficient.' Which may even be true but that's not what is being claimed by the EMH." (12/28/11)  

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