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 →

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 →