17min chapter

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The Reflexive Alchemy of George Soros

New Discourses

CHAPTER

Challenging Traditional Economic Theories

The chapter explores the limitations of predicting market equilibrium perfectly, discussing factors like demand, supply, biases, and stochastic elements that impact market dynamics. It contrasts George Soros' viewpoint on instability with traditional ideas of stable equilibrium, emphasizing the influence of bias and incomplete information in economic activities. The discussion delves into the concept of reflexivity in economics, showcasing how price expectations can lead to self-reinforcing trends and market distortions.

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