Symmetry, Efficient Markets and Monetary Neutrality

Luo, Yinghao (2020): Symmetry, Efficient Markets and Monetary Neutrality.

Abstract

We study the relationship between symmetry, efficient markets and monetary neutrality. We find that information symmetry can lead markets to reach efficient outcomes and will produce the prices which fluctuate randomly. However, information symmetry is almost impossible to achieve without considering the time factor! In addition, efficient markets can lead to monetary neutrality.

• Item Type: MPRA Paper
• Language: English
• Keywords: information symmetry; communism; efficient markets; value neutrality; monetary neutrality
• Subjects: A - General Economics and Teaching > A1 - General Economics > A13 - Relation of Economics to Social Values; D - Microeconomics > D3 - Distribution; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E44 - Financial Markets and the Macroeconomy; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit; G - Financial Economics > G1 - General Financial Markets > G14 - Information and Market Efficiency ; Event Studies ; Insider Trading

References

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[3] Luo, Yinghao (2017). Communism, Value Neutrality and Monetary Neutrality. Theoretical and Practical Research in the Economic Fields, Vol 8, No 2 (Winter 2017): pp. 149-152. ISSN 2068-7710. Available at: https://journals.aserspublishing.eu/tpref/article/view/1563

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