Faith in the “efficient markets hypothesis” is largely to blame for the massive deregulation of the late 1990s and early 2000s that made the crisis more likely, if not inevitable. Two economists excoriate the ideology of self-regulating markets and its pseudo-scientific foundations.
Michael D. Goldberg
is Professor of Economics at the University of New Hampshire. He is author together with Roman Frydman of Imperfect Knowledge Economics: Exchange Rates and Risk (Princeton University Press in 2007).