3 ms·
It's usually applied to prices because the assumption is that the act of trading on perceived incorrect prices causes the price to converge to the market's expe
by smallnamespace 10y ago
It's usually applied to prices because the assumption is that the act of trading on perceived incorrect prices causes the price to converge to the market's expectations.
Whereas for employment, you would need a mechanism that allows for 1) a public prediction of what the future unemployment path is and 2) a way for people to put money down if they disagree, such that it actually directly impacts unemployment.