Economists Unveil New Way to View Financial Markets
University of New HampshireTwo economists offer a new way to look at financial markets that recognizes that the rational market is a myth – in the strictest sense of the word: it is a widely held but false belief. It cannot be turned into reality by any means, including regulatory policy, no matter how wise or efficacious. The reason is simple: assets’ underlying values unfold over time in non-routine ways that no one can fully foresee.