…financial markets. Now it seems to me that the relationship between trading volume and market efficiency is an empirical question. One sure can’t answer it assuming markets are always efficient….

…This is not the approach taken by economists. Models of say labor markets or financial markets which are rejected by the data are, nonetheless, used in macro models, based on…

Robert Waldmann I think I should explain a claim I made in the post below. I assert that the efficient markets hypothesis (EMH) does not imply the rational expecations hypothesis…

…about the location of an unobserved variable from a correlation, assuming that 19th and 20th century financial markets must have been efficient and reaching a conclusion by not considering any…

…that this won’t revitalise the assets themselves and I will (rightly) note that option markets rather saved the equity markets in 1987, for instance. You will note that I am…

…that Fama was assuming that the classical model, in which all markets including the labor market clear, holds. Brad DeLong notes that Fama made it very clear that he was…

…become mis-priced by investors in broader markets. I’ve been disturbed to note that some $57 billion was quietly flung into the financial markets by the Fed and the Treasury Department…

…to support banks, credit markets, and other struggling institutions. As a result, any improvement in capital markets cannot be attributed solely to TARP, nor will a slow recovery necessarily reflect…

…The Fed’s expansion of liquidity, the biggest since credit markets seized up last year, came hours before the U.S. House of Representatives rejected a $700 billion bailout for the financial…

…“ruined New York City real estate markets.” Those are Epstein’s words, but we’re heard it before. Rent control has been around in NYC since 1943, and libertarians and Republicans have…