7 Eugene Fama
Roberts
Eugene Fama is another Nobel prize winner in economics. His prize is for showing that markets work efficiently and, as long as you and me and everybody has enough information about what is going on, then the market will ensure full employment, steady growth and rising incomes for all. This is called the Efficient Markets Hypothesis (EMH). After the Great Recession, Fama was asked what went wrong. He replied, “We don’t know what causes recessions. We’ve never known. Debates go on to this day about what caused the Great Depression. Economics is not very good at explaining swings in economic activity”.