Feb 19 2010
The Milton Friedman orthodoxy
The efficient-market hypothesis, which states that the price of stocks and other financial assets accurately reflect all the available information about economic fundamentals.
and,
the rational-expectations theory, which posits that individuals and firms are hyper-intelligent decision-makers who have a correct model of the economy in their minds.
[Source]: After the blowup, New Yorker, January 11, 2010
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