[Journal:] European Financial and Accounting Journal [ISSN:] 1805-4846 [Volume:] 7 [Year:] 2012 [Issue:] 1 [Pages:] 62-73
It is possible to say that no matter how the Efficient Market Hypothesis has been criticized and/or overhauled, a degree of the relevant data proliferation is crucial to the investor’s decision making process. The information asymmetry is then a phenomenon which creates distortions in a performance of the capital market. The “pseudoeffective” market model is attempting to highlight the impact of this phenomenon on some macroeconomic variables conducive to the general economic equilibrium.
Pseudoeffective market model IS-LM framework. Information asymmetry Effective market equilibrium Actual return