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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/28348
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| Title: | The Efficient Markets Hypothesis: The Demise of the Demon of Chance? |
| Authors: | Brown, Stephen J, |
| Issue Date: | 30-Nov-2009 |
| Series/Report no.: | FIN-09-028 |
| Abstract: | Many commentators have suggested that economists in general and
financial economists in particular have some responsibility for the
recent global financial crisis. They were blinded by an irrational faith
in a discredited Efficient Markets Hypothesis and failed to see the
bubble in asset prices and to give due warning of its collapse. There is
considerable confusion as to what this hypothesis is and what it says.
The irony is that the strong implication of this hypothesis is that
nobody, no practitioner, no academic and no regulator had the ability to
foresee the collapse of this most recent bubble. While few economists
believe it is literally true, this hypothesis is considered a useful
benchmark with some important practical implications. Indeed, a case can
be made that it was the failure to believe in the essential truth of
this idea which was a leading factor responsible for the global
financial crisis |
| URI: | http://hdl.handle.net/2451/28348 |
| Appears in Collections: | Finance Working Papers
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