The Efficient Markets Hypothesis

Hayes, M.G.

The Efficient Markets Hypothesis

Hayes, M.G.

Authors

M.G. Hayes

Contributors

J.E. King
Editor

Abstract

Although something of a chameleon (Findlay and Williams, 2008), the efficient markets hypothesis (EMH) reduces to a claim that ‘you can’t beat the market’. In its weak form, it holds that past financial data are no guide to the future. In its stronger forms, it maintains that financial asset prices represent ‘fundamental value’, except to the extent that they are deflected by temporary departures from rationality. Despite the various financial crises during the period of financial liberalisation, together with much academic criticism based on empirical evidence as well as the actual practices of professional investors, the hypothesis remains tenacious. This persistence reflects its intimate relationship with the core concept of rational expectations that underpins mainstream macroeconomics and financial economics.

Citation

Hayes, M. (2012). The Efficient Markets Hypothesis. In J. King (Ed.), The Elgar companion to post Keynesian economics. Edward Elgar Publishing

Acceptance Date	Aug 12, 2015
Publication Date	Jan 1, 2012
Deposit Date	Aug 12, 2015
Publicly Available Date	Apr 6, 2016
Publisher	Edward Elgar Publishing
Book Title	The Elgar companion to post Keynesian economics.
ISBN	9781849803182
Public URL	https://durham-repository.worktribe.com/output/1645650
Publisher URL	http://www.e-elgar.com/shop/the-elgar-companion-to-post-keynesian-economics-second-edition?___website=uk_warehouse