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This blog is maintained by the Growth and Crisis (GC ) Program of the World Bank Institute.
We bring you timely news, resources, tools, ideas and commentaries on issues related to the global economic crisis and growth.
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The theory of being rational
The theory of being rational has been long discussed. It's also a big topic in the financial markets and known as behavioral finance. It is fact and can be seen on the financial desasters on Wall Street, that the market participiants are human beings which are irrational. I would say the stock market is a mirror of the real economy. Good paper by the way.