Re: [Pen-l] FYI: Skidelsky on Keynes

["Jim Devine" <jdevine03@xxxxxxxxx>]

Skidelsky wrote:
>> Greenspan must have believed something like
>> the "efficient-market hypothesis," which holds
>> that financial markets always price assets
>> correctly.

Julio Huato wrote:
> But this is *not* what the EMH holds.

right. Instead of describing perfect foresight about the gyrations of
asset prices, the EMH is only right _on average_ (under the assumption
of Gaussian randomness, etc.) with given information about underlying
asset values.
-- 
Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own
way and let people talk.) -- Karl, paraphrasing Dante.
_______________________________________________
pen-l mailing list
pen-l@xxxxxxxxxxxxxxxxxx
https://lists.csuchico.edu/mailman/listinfo/pen-l