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Are Investors Always Rational and Markets Always Right? - The Story Behind Rational Market TheoryEvent Date
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Justin Fox, Economics & Business Columnist, TIME magazine
Justin Fox is the economics and business columnist for Time magazine. He also writes the Curious Capitalist blog on Time.com. Before joining Time in 2007, Fox spent more than a decade at Fortune magazine, where he covered a wide variety of topics related to economics, finance, and international business. In 2000 and 2001, he was the magazine's Europe editor, based in London. Prior to joining Fortune, Fox worked at several newspapers, including American Banker and The Birmingham (Alabama) News. He has a degree in international affairs from Princeton University, studied political science at the University of Leiden in the Netherlands, and speaks Dutch and German. Fox is married and has a son. He lives in Manhattan. The Myth of the Rational Market is his first book. Event Details
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With its roots in the early 20th century, how has rational market theory survived as its very foundation is challenged by the financial crisis now gripping the global markets? What role did the belief that the stock market is both random and perfectly rational play in the current crisis and how did it influence new ideas about corporate governance? How did it help to spawn new financial instruments such as index funds, credit default swaps, and collateralized debt obligations? TIME magazine’s Justin Fox joins the Council to tell the story behind the premise that financial markets are rational, reliable and capable of regulating themselves. He also introduces the economists who have challenged the new rational market orthodoxy, among them Robert Shiller, Joseph Stiglitz, and the current top economic adviser in the Obama White House, Lawrence Summers.