tag:blogger.com,1999:blog-53246864840716464.post8427122243755988864..comments2024-02-29T00:46:38.800-08:00Comments on Washingtons Blog: Shiller: "Look up 'Bubble' in an Economic Textbook and It's Not There. [People] are Living in a 'Pretend-and-Extend' Environment"Unknownnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-53246864840716464.post-54575516412806368412011-05-05T19:52:10.414-07:002011-05-05T19:52:10.414-07:00Don't most economists think the world is not s...Don't most economists think the world is not strong form efficient?JonSidneyBhttps://www.blogger.com/profile/03447067150749650851noreply@blogger.comtag:blogger.com,1999:blog-53246864840716464.post-91609171837503199572009-10-19T10:11:04.456-07:002009-10-19T10:11:04.456-07:00According to the curious assumptions of the Effici...According to the curious assumptions of the Efficient Market Hypothesis and Rational Expectations Hypothesis that are needed for equilibrium modeling, gluts and bubbles do not arise endogenously in free markets. If something like this happens, it "must" be because of an exogenous "shock" to the economic system, which is otherwise self-regulating and ever in equilibrium due to endogenous market forces.Tom Hickeyhttps://www.blogger.com/profile/08454222098667643650noreply@blogger.com