> > Maybe by "sophisticated" he meant that the markets were "rational," in
> > the sense that tomorrow's prices are best predicted by today's
> > prices...
>
> But I thought that efficient market theory held that prices were not
> predictable from past prices....
>
What wicked web we weave when at first... Kind of like the circle that
follows from the argument that corporations just pass taxes on to consumers.
If that were true it would imply firms are price makers and not takers. But
if that is the case then there is prima facie case for taxing monopoly
profits. If not then the original proposition is wrong because firms cant
pass along taxes to consumers.
Travis