Wolfgang Filc: Inefficient markets: Causes and consequences

Quotable article from ...

Inefficient markets: Causes and consequences

12 pp.
2.70 EUR
(March 2009)

If you prefer not to purchase downloads via PayPal, you are welcome to contact the publisher directly. In this case, payment can be made conveniently via bank transfer.
In case of problems please contact us.

I agree with the terms and conditions, especially § 8 (only private use, no transmission to third party) and accept that my order cannot be revoked.

download size: approx. 211 kb

The author holds the view that efficient financial markets are an indispensable requirement for economic well-being – economic growth, high employment, and price stability. But as financial turbulences during the last decade have demonstrated impressively according to Filc, the formerly prevailing strong belief that prices and yields in financial markets represent efficient solutions vanished into thin air. The underlying reasons for financial systems’ proneness to crisis are risk, uncertainty, ignorance and greed, reinforced by financial globalisation. It is argued that a precondition to prevent financial crises is a credible macroeconomic policy and a much higher degree of coordination of economic policy between countries, which are of great importance for the world economy, as well as the elimination of those exchange rate developments which generate misleading allocation signals. Finally, the need of global governance of financial markets that accords with globalised economic relations is claimed.

Agriculture & Nutrition

Countries

Economy

Enterprise

Environment

Ethics

History

Philosophy of Science

Politics

Society