Open University: Robert Shiller

Students, here is the link as promised: http://oyc.yale.edu/economics/financial-markets

Here is the description of the course:

Financial institutions are a pillar of civilized society, supporting people in their productive ventures and managing the economic risks they take on. The workings of these institutions are important to comprehend if we are to predict their actions today and their evolution in the coming information age. The course strives to offer understanding of the theory of finance and its relation to the history, strengths and imperfections of such institutions as banking, insurance, securities, futures, and other derivatives markets, and the future of these institutions over the next century.

And to whet your appetites, here is a quote from Professor Shiller on efficient markets:

…remember that the random walk that we see in stock prices is not the behavior of a drunk, even though you can describe a random walk as drunken behavior. The idea in the theory is that these movements only appear random because they’re news and news is always unpredictable. If the market is doing the best job — this is efficient markets — in predicting the future, that means then that any time the stock market moves it’s because something surprising happened. Like there might be a new breakthrough in science or there could be war or something outside — this is the story — outside of the economic system that disrupts things. [link]

Enjoy!

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