Neo-Classical Economic Theories, Methodology, and Praxis Optimize Criminogenic Environments and Produce Recurrent, Intensifying Crises
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Authors
Black, William K.
Issue Date
2011
Volume
44
Issue
Type
Journal Article
Language
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Abstract
INTRODUCTION|It is now generally understood that neo-classical economics and modern finance theory have failed to understand or counter even hyper-inflated financial bubbles, the financial crises they cause, and the resultant severe recessions. This failure arises from a more basic failure-modern finance theory and neo-classical economics are fatally flawed. The theory is premised on the existence (indeed, the virtual inevitability) of "efficient markets" absent government "interference." While there are variant definitions of "efficient markets," even the weakest meaningful definition requires that the markets (1) not make systematic pricing errors and (2) move consistently towards more accurate pricing when random pricing errors exist...
Description
Citation
44 Creighton L. Rev. 597 (2010-2011)
Publisher
Creighton University School of Law