Does misinformation feed capitalism?

Traders buy and sell based, often, on hearsay. Mum and dad investors can take a punt based on advice from ‘experts’ or from the lies they see in a company prospectus. Whatever the level of investor, you always base decisions on imperfect information. Like with anything, the person doing the selling knows more about the state of the product than the one doing the buying. So, what if we had more information? Phil Dobbie asks Professor Steve Keen what would happen if the information imbalance didn’t exist. Could we avoid market crashes, for example? Can financial markets survive without cashed up gamblers?

To hear the full version subscribe by picking a plan in the right column of the Debunking Economics website (not the mobile app).

Leave a Reply

Your email address will not be published.

Scroll to top