Michael D. Goldberg - Efficient Markets: Fictions and Reality

The video discusses the efficient market hypothesis (EMH) and critiques its assumptions, especially in light of the financial crisis. It introduces the contingent market hypothesis (CMH) as an alternative, emphasizing the role of imperfect knowledge and the need for state intervention to manage excessive market swings. The video argues for a balanced approach between market freedom and regulatory oversight to ensure economic stability.

How do price swings in financial markets relate to the concept of imperfect knowledge?

What are the key assumptions that economists have used to support the efficient market hypothesis?

What evidence is presented in the text regarding the stability of correlations in asset markets?

Summarize the proposed measures for dampening excessive price swings in asset markets.