The New Yorker's John Cassidy's latest book, How Markets Fail: The Logic of Economic Calamity, covers free market thinking from Adam Smith to the Global Economic Crisis. And in putting the events of the last two years into this deep historical context, Cassidy has grown skeptical about the efficient market hypothesis--the iidea that the efficiency of markets means that the "markets never depart from fundamentals." Cassidy spoke about the book at the Carnegie Council earlier this month, and he told the audience, in short, that speculative bubbles like the housing bubble discredit the notion that the "market price is always right":
You can watch the full event, and read a transcript, here.
Posted
12-23-2009 9:49 AM
by
Graham Griffith
Filed under: finance, prices, markets, free markets, Carnegie Council, economic history, efficient market hypothesis, The New Yorker, efficient market theory, How Markets Fail: The Logic of Economic Calamity, John Cassidy, speculative bubbles