PERSONAL FINANCIAL STRATEGIES

PERSONAL FINANCIAL STRATEGIES While taking a course in economics is no guarantee of great wealth, the principles of modern finance can definitely help you invest your nest egg wisely and avoid the worst financial blunders. What lessons does economics teach about...

A Random Walk

A Random Walk The efficient-market view provides an important way of analyzing price ~m.ts in organized markets. Under this approach, the price movements of stocks should look highly erratic, like a random walk, when charted over a period of time. A price follows a...

The Great Crash.

The Great Crash. Speculative bubbles always produce crashes and sometimes lead to. economic, panics. One traumatic event has cast a shadow over stock markets for decades-a-the 1929 panic and crash. This’ event Ushered’ in the long and painful Great...

Bubbles and Crashes

Bubbles and Crashes The history of finance is one of the most -exciting, and sobering, parts of economics, as is illustrated by the quote from Burton talkie that leads off this section. When a psychological frenzy seizes the market, it . can result in speculative...