Economists Do It With Models

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Entries Tagged as 'Finance'

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November 16th, 2015 · No Comments
Finance · Tumblr

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Tags: Finance · Tumblr

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When The Efficient-Markets Hypothesis Gets Taken Too Far, With Bonus Zoo Footage…

June 8th, 2014 · 8 Comments

It’s no secret that many economists believe in the efficiency of markets- in fact, there’s a fairly well-known joke that goes something like the following: Normal person: Hey look, somebody dropped $20 on the sidewalk. Economist: Nonsense- that can’t be a real $20 bill, since, if it was, somebody would have picked it up already. […]

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Tags: Finance

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The New (And Improved) Alan Greenspan Does The Daily Show…

October 24th, 2013 · 3 Comments
Behavioral Econ · Books · Finance · Markets · Policy

Oh man, this is great…it’s like watching everybody’s grandfather talk about bank regulation, AND Greenspan is basically saying that behavioral economists had it right all along: (Sidenote: the closed captions are really helpful if you are somewhere where audio is frowned upon.) Oh good, we’ve gotten to a point in the world where the guy […]

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Tags: Behavioral Econ · Books · Finance · Markets · Policy

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On The Efficient Markets Hypothesis, Or, How Cats Are The New Monkeys With Dart Boards…

January 19th, 2013 · 7 Comments
Buyer Beware · Finance · Markets

One of the most fundamental concepts in finance is the efficient markets hypothesis. In case you are unfamiliar with the concept, here’s a bit of background: The efficient markets hypothesis has historically been one of the main cornerstones of academic finance research. Proposed by the University of Chicago’s Eugene Fama in the 1960’s, the general […]

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Tags: Buyer Beware · Finance · Markets

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Picture Of The Day: On The Perils Of Automated Trading Algorithms…

November 21st, 2012 · 3 Comments
Finance · Just For Fun

Apparently this is what could happen when computers take over the world: That screen shot is from a segment on the Colbert Report on high-frequency trading. I think I was mostly struck by how similar the operations of high-frequency traders are to those of ticket scalpers. You can see the segment here: The Colbert Report […]

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Tags: Finance · Just For Fun

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FAQ: What Is The LIBOR And Why Should I Care? Now With More Pictures…

July 24th, 2012 · 55 Comments
Buyer Beware · Finance

Q: What in the world is LIBOR? Is it like a liger? Because that would be awesome. A: LIBOR stands for “London Interbank Offered Rate,” and it gives the interest rate that major banks in London would pay to borrow money from one another. Technically, the LIBOR is a collection of a bunch of different […]

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Tags: Buyer Beware · Finance