Markus Brunnermeier - Efficient Market Hypothesis, Bubbles and Liquidity

The video provides an overview of the efficient market hypothesis, emphasizing the importance of rational expectations. It discusses the different forms of market efficiency and highlights the logical inconsistencies in the strong form. The video explores market inefficiencies, particularly focusing on bubbles and credit bubbles, and their implications for systemic risk. It concludes with a discussion on regulatory measures needed to address these market failures, emphasizing the need for countercyclical regulation and systemic risk measures.

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