What Happened to Efficient Markets?
By Peter J. Boettke
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|
|Spring 2020||Misess Human Action and Its Place in Science and Intellectual Culture|
|Fall 2019||What Happens When the Economic Past Is Left to the Kindness of Its Enemies?|
|Winter 2018/19||Stephen Margoliss Contributions to Economics and Political Economy|
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