Modern Financial Market Theory – A Critique Based on the Logic of Human Action
The modern financial market theory (MFMT) – based on the efficient market hypothesis, rational expectation theory, and modern portfolio theory – has become the standard approach in financial market economics. In this article, the MFMT will be critically reviewed using the logic of human action (or:...
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| Veröffentlicht in: | Credit and capital markets (Berlin) 2021, Vol.54 (3), p.447-467 |
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| container_end_page | 467 |
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| container_issue | 3 |
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| container_title | Credit and capital markets (Berlin) |
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| creator | Polleit, Thorsten |
| description | The modern financial market theory (MFMT) – based on the efficient market hypothesis, rational expectation theory, and modern portfolio theory – has become the standard approach in financial market economics. In this article, the MFMT will be critically reviewed using the logic of human action (or: praxeology) as an epistemological metatheory. It will be shown that the MFMT exhibits (praxeo-)logical deficiencies so that it cannot provide investors with well-founded decision-making support in real-world financial markets. |
| doi_str_mv | 10.3790/ccm.54.3.447 |
| format | Article |
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| ispartof | Credit and capital markets (Berlin), 2021, Vol.54 (3), p.447-467 |
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| source | EBSCOhost Business Source Complete; Alma/SFX Local Collection |
| subjects | Austrian Economics Capital Asset Pricing Model Capital assets Capital markets Decision making Economic Methodology Economics Efficient Market Hypothesis Efficient markets Epistemology Financial market Hypotheses Investments Logic Logic of human action Modern Portfolio Theory Preferences Rational Expectation Theory Scientific method Securities markets |
| title | Modern Financial Market Theory – A Critique Based on the Logic of Human Action |
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