On Jan 19, 2007, at 12:02 PM, Willy Greenfields wrote:
>> rational bubble argument
>
> When exactly was rationality blackened so badly?
Part of it is that orthodox finance theorists don't want to allow any space for irrationality in the markets, so everything has to be assimilated to a rational explanation. (As someone said, can't remember who, the orthodox see appeals to irrationality as a form of "cheating.") Even Stiglitz used to think that way, but he may be coming around.
Doug