An Inherent Instability of Efficient Markets

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An Inherent Instability of Efficient Markets

Speculative markets are often described as "informationally efficient" such that predictable price changes are eliminated by traders exploiting them, leaving only residual unpredictable fluctuations. This classical view of markets operating close to an equilibrium is challenged by extreme price fluctuations which occur far more frequently than can be accounted for by external news. Here we show...

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ژورنال

عنوان ژورنال: Scientific Reports

سال: 2013

ISSN: 2045-2322

DOI: 10.1038/srep02784