• Do more investors at financial markets convey more information about the "true", or "fair", or "fundamental", or ... price?

Answer

• NO.

Implication

• We get it all wrong in macro finance, empirically and theoretically.

To learn more about this conclusion please attend my talks at various conferences, or follow this link. NEW: update published with even more data evidence!

Applying the Lucas (1976) critique to DSGE models yields interesting insights and demands a thorough consideration of uncertainty.

German versions on the (mis)use of the term "Casino capitalism" here and here available.

You may also fancy these publications:

• The puzzle that just isn't, April 2016.
• A new interpretation of known facts: The case of two-ways causality between trading and volatility, Economic Modelling, 29(3), pp. 664-70, 2012.
• Our economy, Modern Economy, 2(4), pp. 569-574, 2011, doi:10.4236/me2011.24063.
• The forward bias puzzle: Still unsolved, Journal of International Financial Markets, Institutions and Money, 21, pp. 605-610, 2011, doi: 10.1016/j.intfin.2011.06.001.

Selected past conference presentation(s):

• 7th World Congress of the Bachelier Finance Society, Sydney, June 2012.
  
• Canadian Economic Association Annual Conference in Toronto, May 2009.Financial Econometrics Conference Berlin, March 2009.
• Money, Macro and Finance Research Group 40th ANNUAL CONFERENCE 2008 Birkbeck College, University of London, September 2008.
• European Economic Association, Milano, August 2008.
• Quantitative Methods in Finance, Sydney, December 2007.