The Myth of the Rational Market - A History of Risk, Reward, and Delusion on Wall Street

The evolution of financial theory is marked by the persistent search for order and predictability in markets that often seem chaotic. In tracing the intellectual journey of economists and financiers, this work explores how the idea of market rationality became a cornerstone of modern finance, only to be repeatedly challenged by real-world events. The narrative weaves together the ambitions of academic theorists and the practical realities faced by Wall Street, offering readers a comprehensive understanding of how risk, reward, and human psychology shape financial markets.

• Markets are not perfectly rational: The belief...

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