The Global Financial Crisis and the Efficient Market Hypothesis: What Have We Learned?

ArXiv ID: ssrn-1502815 “View on arXiv”

Authors: Unknown

Abstract

The sharp economic downturn and turmoil in the financial markets, commonly referred to as the “global financial crisis,” has spawned an impressive outpouring of

Keywords: Global Financial Crisis, Systemic Risk, Liquidity Crises, Contagion, Banking Regulation, Macro/Commodities

Complexity vs Empirical Score

• Math Complexity: 1.5/10
• Empirical Rigor: 0.5/10
• Quadrant: Philosophers
• Why: The paper is a theoretical commentary on the Efficient Market Hypothesis (EMH) in the context of the Global Financial Crisis, discussing economic theory and historical anecdotes without mathematical proofs or empirical backtesting.

  flowchart TD
    A["Research Question: Does the GFC challenge the EMH?"] --> B["Method: Comparative Analysis"]
    B --> C["Data: Pre-crisis vs. Crisis Periods"]
    C --> D["Computational Process: Event Studies & Volatility Analysis"]
    D --> E["Key Findings"]
    E --> F["Market Inefficiency: Asset prices deviated from fundamentals"]
    E --> G["Systemic Risk: Contagion effects proved significant"]
    E --> H["Policy Implications: Enhanced banking regulation required"]