"Mr Thaler concedes that in some ways the events of the past couple of years have strengthened the [efficient market hypothesis]. The hypothesis has two parts, he says: the “no-free-lunch part and the price-is-right part, and if anything the first part has been strengthened as we have learned that some investment strategies are riskier than they look and it really is difficult to beat the market.” The idea that the market price is the right price, however, has been badly dented."
This is part of a has a great series on recent events in Macroeconomics in the Economist magazine :
- The state of macroeconomics
Jul 16th 2009 - Where economics went wrong
Jul 16th 2009
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