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Six Refuted Doctrines

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  • Quiggin, John

Abstract

This article examines six widely-held doctrines concerning economic theory and economic policy that have been refuted, or at least rendered highly problematic by the global financial crisis, namely: (i) the efficient markets hypothesis; (ii) the Great Moderation; (iii) central bank independence; (iv) trickle down; (v) the case for privatization; and (vi) individual retirement accounts. Copyright (c) 2009 The Economic Society of Australia.

Suggested Citation

  • Quiggin, John, 2009. "Six Refuted Doctrines," Risk and Sustainable Management Group Working Papers 151521, University of Queensland, School of Economics.
    • Handle: RePEc:ags:uqsers:151521
    DOI: 10.22004/ag.econ.151521
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    References listed on IDEAS

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    1. Simon Grant & John Quiggin, 2003. "Public Investment and the Risk Premium for Equity," Economica, London School of Economics and Political Science, vol. 70(277), pages 1-18, February.
    2. Ellen R. McGrattan & Edward C. Prescott, 2001. "Taxes, Regulations, and Asset Prices," NBER Working Papers 8623, National Bureau of Economic Research, Inc.
    3. John Quiggin, 1995. "Does Privatisation Pay?—A Reply to Domberger," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 28(2), pages 48-49, April.
    4. Robin Hanson, 2006. "Designing real terrorism futures," Public Choice, Springer, vol. 128(1), pages 257-274, July.
    5. Fama, Eugene F, 1970. "Efficient Capital Markets: A Review of Theory and Empirical Work," Journal of Finance, American Finance Association, vol. 25(2), pages 383-417, May.
    6. Simon Grant & John Quiggin, 2004. "Noise Trader Risk and the Welfare Effects of Privatization," Economics Bulletin, AccessEcon, vol. 5(9), pages 1-8.
    7. Grant Simon & Quiggin John, 2005. "What Does the Equity Premium Mean?," The Economists' Voice, De Gruyter, vol. 2(4), pages 1-7, September.
    8. Simon Domberger, 1995. "What Does Privatisation Achieve?—A Comment on Quiggin," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 28(2), pages 43-47, April.
    9. Poterba, James M. & Summers, Lawrence H., 1988. "Mean reversion in stock prices : Evidence and Implications," Journal of Financial Economics, Elsevier, vol. 22(1), pages 27-59, October.
    10. John Quiggin, 1995. "Does Privatisation Pay?," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 28(2), pages 23-42, April.
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    Cited by:

    1. Anne Jerneck, 2015. "Understanding Poverty," SAGE Open, , vol. 5(4), pages 21582440156, November.
    2. J. E. King, 2010. "Six More Refuted Doctrines: A Comment on Quiggin," Economic Papers, The Economic Society of Australia, vol. 29(1), pages 34-39, March.
    3. Lin Liao & Helen Kang & Richard D. Morris, 2021. "The value relevance of fair value and historical cost measurements during the financial crisis," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(S1), pages 2069-2107, April.
    4. Kowalski, Tadeusz, 2013. "Globalization and Transformation in Central European Countries: The Case of Poland," MPRA Paper 59306, University Library of Munich, Germany.
    5. Morris, Richard D. & Kang, Helen & Jie, Jing, 2016. "The determinants and value relevance of banks' discretionary loan loss provisions during the financial crisis," Journal of Contemporary Accounting and Economics, Elsevier, vol. 12(2), pages 176-190.
    6. Frijters, Paul & Johnston, David W. & Shields, Michael A. & Sinha, Kompal, 2015. "A lifecycle perspective of stock market performance and wellbeing," Journal of Economic Behavior & Organization, Elsevier, vol. 112(C), pages 237-250.

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    Keywords

    Financial Economics; Risk and Uncertainty;

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets

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