Money, Credit and Asset Prices
Money, Credit and Asset Prices by Gordon Pepper
English | 8 Mar. 1994 | ISBN: 033358581X | 328 Pages | PDF | 16 MB
English | 8 Mar. 1994 | ISBN: 033358581X | 328 Pages | PDF | 16 MB
According to mainstream economic theory, the prices of individual stocks respond rationally to unexpected news. However, real market movements appear to respond to news in more complex and sometimes perverse ways, overshooting or not reacting at all. Professor Pepper puts forward a new theory based on the analysis of the supply of and demand for investible funds. He shows that price movements are governed not by news but by financial requirements of investors, requirements which therefore become a powerful forecasting tool.