George Akerlof - Efficient Markets Hypothesis and Causes of Crisis

The video discusses the efficient market hypothesis and its potential role in financial crises, comparing it to the causes of World War One. It introduces the concept of 'animal spirits' in capitalism, focusing on confidence, snake oil, and stories as key factors in economic cycles. The speaker highlights the need for effective regulation in financial markets, using the metaphor of a playpen to illustrate the balance between freedom and oversight.

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