Why the Efficient Market Hypothesis fails to explain real-world economic puzzles
In short: The Efficient Market Hypothesis suggests markets process news perfectly to set prices, yet reality often tells a different story. Professor Jagjit Chadram explores the gap between economic theory and actual market behavior.
Professor Jagjit Chadha, the Gresham Professor of Commerce, examines the tension between the theory that markets are superior news processors and the frequent existence of market inefficiencies. In a series of six lectures, he dissects macroeconomic puzzles—such as the Carry Trade and the Equity Premium—to investigate how economic practice diverges from established theory and how our understanding might be improved.
Chadha, a Professor of Economics at the University of Kent and an adviser to institutions like the Bank of England and HM Treasury, uses these real-world phenomena to question the reliability of the Efficient Market Hypothesis.
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- Summary by Intellect · source: Efficient Markets - Professor Jagjit Chadha
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