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

See all articles by Brendan McSweeney

Brendan McSweeney

University of London, Royal Holloway - School of Management

Multiple version iconThere are 2 versions of this paper

Date Written: February 29, 2010

Abstract

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

McSweeney, Brendan, Is Denial of the Possibility of Financial Asset Market Failure Responsible for an Economic Holocaust? (February 29, 2010). Royal Holloway University of London School of Management Working Paper No. SoMWP-0902. Available at SSRN: https://ssrn.com/abstract=1632384 or http://dx.doi.org/10.2139/ssrn.1632384

Brendan McSweeney (Contact Author)

University of London, Royal Holloway - School of Management ( email )

Egham
Surrey, Egham TW20 8DG
United Kingdom

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