This lecture gives a brief history of the young field of financial theory, which began in business schools quite separate from economics, and of my growing interest in the field and in Wall Street. A cornerstone of standard financial theory is the efficient markets hypothesis, but that has been discredited by the financial crisis of 2007-09. This lecture describes the kinds of questions standard financial theory nevertheless answers well. It also introduces the leverage cycle as a critique of standard financial theory and as an explanation of the crisis. The lecture ends with a class experiment illustrating a situation in which the efficient markets hypothesis works surprisingly well.
SYDNEY, May 24, 2012 /PRNewswire/ -- A remarkable 53 per cent growth in its capital expenditure over 2009-2010 gives an indication of the opportunities afforded by the Au...
Richard Baldwin, Toshihiro Okubo, 24 May 2012New-paradigm globalisation – driven by lower coordination costs rather than trade costs – is changing the nature of internatio...
Singapore Exchange (SGX) and UOB Bullion and Futures Limited (UOBBF) today announced that they are setting up a new Professional Traders Development Centre to grow and strengt...
6 hours ago - PR Newswire: Banking & Financial Services
This quarterly earnings release should be read in conjunction with our unaudited second quarter 2012 Report to Shareholders for the three and six months ended April 30, 2012...
