At one point in Zombie Economics, I tried a Popperian (or maybe Paulian) smackdown, saying that some defenders of EMH used arguments that effectively rendered it unfalsifiable. I thought that was a bad thing, but apparently at least one reviewer disagrees. Following my stoush with Murdoch, a commenter pointed me to this piece by Stephen Williamson of Washington University at St Louis, who has apparently been asked to review the book for the Journal of Economic Literature. Williamson claims that I am badly confused about the EMH, and that
Market efficiency is simply an assumption of rationality. As such it has no implications. If it has no implications, it can’t be wrong.
He follows up with “Like the “efficient markets hypothesis,” DSGE has no implications, and therefore can’t be wrong.””
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