Efficient Market Hypothesis and Behavioral Finance - YouTube
Efficient Market Hypothesis and Behavioural Finance
It is well-known that when people are asked to make quantitative assessments theirassessments are influenced by suggestions. An example of this is found in theresults survey researchers obtain. These researchers often ask people about their incomesusing questionnaires in which respondents are instructed to indicate which of a number ofincome brackets, shown as choices on the questionnaire, their incomes fall into. Ithas been shown that the answers people give are influenced by the brackets shown on thequestionnaire. The tendency to be influenced by such suggestions is called"anchoring" by psychologists.
BF classic + see efficient, efficient market hypothesis
Policy formulation that affects aggregate employment levels also occurs in other parts of Government - the Central Bank, Ministries of Finance or Ministry for Trade and Industry for example. In Central Banks, for example, decisions to change interest rates, alter the money supply or revise credit regulations all affect the decision of entrepreneurs whether to hire or fire labour. Rarely, however, do such bodies take a major interest in the effects of their policy on employment. Nevertheless, the planning of employment touches on all these concerns. Note that employment planning is concerned more with the demand for jobs than with the supply side of the employment equation.