An Essay On Market Efficiency

Back in October, the Nobel Prize in Economics was split by Eugene Fama, Robert Shiller and Lars Peter Hansen. As we noted, this award highlighted the divide between proponents of market efficiency and proponents of inefficiency. A recent article in Institutional Investor discusses some of the arguments for and against market efficiency. For those of you interested in market efficiency, the article presents a quick overview of market efficiency as well as policy implications concerning market efficiency, for example, "too big to fail" reduces market efficiency.