Title: Emotional Finance and New Economic Thinking
Abstract: I discussed in Chapter 1 how standard economic theory sets out to demonstrate how markets can work. The basic thrust of the argument is that unfettered self-seeking competitive behaviour coordinates an economy and achieves optimal wealth creation and welfare. Markets are self-equilibrating so that inhibiting the behaviour of those in them or interfering with them in any other way than to encourage competition can only produce suboptimal outcomes.KeywordsFinancial MarketTracking ErrorIntegrate StateRational ExpectationFinancial AssetThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
Publication Year: 2011
Publication Date: 2011-01-01
Language: en
Type: book-chapter
Indexed In: ['crossref']
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