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What Happened to “Efficient Markets”?
By Peter J. Boettke
This article appeared in the Winter 2010 issue of The Independent Review


Abstract

The financial crisis invalidated a naïve notion of “efficient markets,” but the most sophisticated version is still viable. Whereas the invalidated version holds that markets never err and always adjust instantaneously, the sophisticated version, associated with the ideas of Adam Smith and F. A. Hayek, holds that markets mobilize individuals to realize gains from trade and to innovate and thereby produce generalized prosperity.



Other Independent Review articles by Peter J. Boettke
    Summer 2015   An Episodic History of Modern Fed Independence
    Winter 2014   Fearing Freedom: The Intellectual and Spiritual Challenge to Liberalism
    Spring 2006   The Political Economy of Stalinism



Volume 14 Number 3
Winter 2010

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