Archived posting to the Leica Users Group, 2005/02/25
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]Well, I am an economist, so here is a lecture. RE does not say that all rumours become self-fulfilling prophecies. It does say that in a competitive market like the stock market, all relevant information is already incorporated into the prices, and so the only way to beat the market in the long run is to have information not available to the market (in the short run, you can of course get lucky or unlucky, but that is merely statistical variation). In macroeconomics, the extreme version of the theory implies that fiscal and monetary policies have no effect because people will foresee the consequences and adjust their behaviour to negate the effects of the policies. Like most extreme theories, it does not hold in the real world but does contain an element of truth. The most prominent exponent of rational expectations is/was (I am not sure if he is still alive) Robert Barro at the University of Chicago. Nathan GREG LORENZO wrote: >>Do you have Economics training? They used to call that the >>Ratioal Expectations Theory. >> > > In the real world it is known as rumour mongering. > > Regards, > > Greg > > _______________________________________________ > Leica Users Group. > See http://leica-users.org/mailman/listinfo/lug for more information > > -- Nathan Wajsman Almere, The Netherlands General photography: http://www.nathanfoto.com Seville photography: http://www.fotosevilla.com Stock photography: http://www.alamy.com/search-results.asp?qt=wajsman http://myloupe.com/home/found_photographer.php?photographer=507 Prints for sale: http://www.photodeluge.com