Is Denial of the Possibility of Financial Asset Market Failure Responsible for an Economic Holocaust?
Royal Holloway University of London School of Management Working Paper No. SoMWP-0902
25 Pages Posted: 29 Jun 2010
Date Written: February 29, 2010
The so-called ‘real economy’ has been deeply contaminated by the most significant global financial crisis for seven decades. The ultimate extent and duration of this rampant degeneration and its longer-term political effects are unpredictable but what caused the crisis? This paper examines a range of suppositions made in theories which deny the possibility of financial asset market failure and identifies ways in which they contributed to the circumstances and actions which created the current crisis.
Keywords: Efficient Market Hypothesis, Financial Markets, Irrationalities, Market Failure, Risk, The Great Moderation, Uncertainty
JEL Classification: D80, E65, G10, G28
Suggested Citation: Suggested Citation