Beyond Mechanical Markets

Beyond Mechanical Markets
Author :
Publisher : Princeton University Press
Total Pages : 304
Release :
ISBN-10 : 9781400838189
ISBN-13 : 1400838185
Rating : 4/5 (89 Downloads)

Book Synopsis Beyond Mechanical Markets by : Roman Frydman

Download or read book Beyond Mechanical Markets written by Roman Frydman and published by Princeton University Press. This book was released on 2011-02-07 with total page 304 pages. Available in PDF, EPUB and Kindle. Book excerpt: A powerful challenge to contemporary economics and a new agenda for global finance In the wake of the global financial crisis that began in 2007, faith in the rationality of markets has lost ground to a new faith in their irrationality. The problem, Roman Frydman and Michael Goldberg argue, is that both the rational and behavioral theories of the market rest on the same fatal assumption—that markets act mechanically and economic change is fully predictable. In Beyond Mechanical Markets, Frydman and Goldberg show how the failure to abandon this assumption hinders our understanding of how markets work, why price swings help allocate capital to worthy companies, and what role government can and can't play. The financial crisis, Frydman and Goldberg argue, was made more likely, if not inevitable, by contemporary economic theory, yet its core tenets remain unchanged today. In response, the authors show how imperfect knowledge economics, an approach they pioneered, provides a better understanding of markets and the financial crisis. Frydman and Goldberg deliver a withering critique of the widely accepted view that the boom in equity prices that ended in 2007 was a bubble fueled by herd psychology. They argue, instead, that price swings are driven by individuals' ever-imperfect interpretations of the significance of economic fundamentals for future prices and risk. Because swings are at the heart of a dynamic economy, reforms should aim only to curb their excesses. Showing why we are being dangerously led astray by thinking of markets as predictably rational or irrational, Beyond Mechanical Markets presents a powerful challenge to conventional economic wisdom that we can't afford to ignore.


Beyond Mechanical Markets Related Books

Beyond Mechanical Markets
Language: en
Pages: 304
Authors: Roman Frydman
Categories: Business & Economics
Type: BOOK - Published: 2011-02-07 - Publisher: Princeton University Press

DOWNLOAD EBOOK

A powerful challenge to contemporary economics and a new agenda for global finance In the wake of the global financial crisis that began in 2007, faith in the r
Beyond Technical Analysis
Language: en
Pages: 412
Authors: Tushar S. Chande
Categories: Business & Economics
Type: BOOK - Published: 2001-05-24 - Publisher: John Wiley & Sons

DOWNLOAD EBOOK

Der Klassiker zur technischen Analyse erscheint jetzt in der 2. ĂĽberarbeiteten, aktualisierten und erweiterten Auflage. Diese Neuauflage bietet eine interessan
Financial Market Bubbles and Crashes
Language: en
Pages: 619
Authors: Harold L. Vogel
Categories: Business & Economics
Type: BOOK - Published: 2021-12-17 - Publisher: Springer Nature

DOWNLOAD EBOOK

Economists broadly define financial asset price bubbles as episodes in which prices rise with notable rapidity and depart from historically established asset va
Rethinking Expectations
Language: en
Pages: 440
Authors: Roman Frydman
Categories: Business & Economics
Type: BOOK - Published: 2013 - Publisher: Princeton University Press

DOWNLOAD EBOOK

This book originated from a 2010 conference marking the fortieth anniversary of the publication of the landmark "Phelps volume," Microeconomic Foundations of Em
Executive Compensation in Imperfect Financial Markets
Language: en
Pages: 259
Authors: Jay Cullen
Categories: Law
Type: BOOK - Published: 2014-10-23 - Publisher: Edward Elgar Publishing

DOWNLOAD EBOOK

This important book discusses the issue of executive compensation in Anglo-American financial markets following the financial crisis. The book begins by context