Does Adam Smiths Invisible Hand Work for Financial Markets: Comments

Does Adam Smiths Invisible Hand Work for Financial Markets: Comments

Amaresh Das

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University of New Orleans

Does Adam Smiths Invisible Hand Work for Financial Markets: Comments

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Abstract

Adam Smith theory of the Invisible Hand is fundamentally flawed. The neoclassical theory based on it relies on market models in which economic agents interact with the market forces that are not governed by Universal Law of Nature; such models ignore correlations that lead to booms and depressions. To prove rigorous theorems financial economists also assume that market fluctuations follow a certain statistical distribution a la a thermodynamic equilibrium approach. Do they really score a major breakthrough? No -the dominant ‘equilibrium principle’ of the market is only a hope, not a reality: It lacks proper empirical underpinning. Statistics and mathematics do not help.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

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How to Cite This Article

Amaresh Das. 2015. \u201cDoes Adam Smiths Invisible Hand Work for Financial Markets: Comments\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 15 (GJMBR Volume 15 Issue C1): .

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GJMBR Volume 15 Issue C1
Pg. 31- 36

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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Classification

GJMBR-C Classification: JEL Code: N20

Submission ReceivedFebruary 5, 2015
Peer Review Double Blind
Handling Editor
Accepted March 1, 2015
Published March 15, 2015

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February 15, 2015

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Article Matrices

Total Score: 131

Country: United States

Subject: Global Journal of Management and Business Research - C: Finance

Authors: Amaresh Das (PhD/Dr. count: 0)

View Count (all-time): 163

Total Views (Real + Logic): 4572

Total Downloads (simulated): 2279

Publish Date: 2015 02, Sun

Monthly Totals (Real + Logic):

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Total Views: 4572

Total Downloads: 2279

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