Tag Archives: EMH

Efficient Atmospheres Hypothesis

Mark Buchanan in The Physics of Finance has another great post called “Of hurricanes and economic equilibrium”. The Efficient Market Hypothesis has been beaten up quite a lot lately, but this is quite a nice pummeling.  How would a meteorologist using the equivalent of the EMH fare in the aftermath of Hurricane Irene? Subscribe to … Continue reading

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Market efficiency versus stability

Mark Buchanan has a piece on Bloomberg called “Sand in the machine the key to stable markets”. This is an introduction into the idea that market efficiency is at odds with market stability. A couple of quotes: Every modern economy depends on financial markets … to funnel capital into the most worthwhile enterprises. But we … Continue reading

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Boris The Banker explains efficient markets

Amy Anyone: What is EMH? Boris The Banker: That’s the Efficient Market Hypothesis, or sometimes the Efficient Markets Hypothesis. Amy: What’s that? Boris: It says that all available and relevant information has been taken into account in the price of items in the market — a stock market for example. Amy: Does it have any … Continue reading

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