The Professor of Economics hears someone knocking to his front door at the midst of the night and rushes to open it with his wife in close pursuit thinking that Stanford students, confined for months to their tiny campus rooms, are rioting and he will be evacuated by the National Guard.
Instead, what our Professor gets from whoever interrupted his sleep is the news that he’s received the Nobel Prize. Now, can’t you see the irony?
If you can — you, probably, had taken Investing 101 in your University. Indeed, the efficient-market hypothesis (EMH), according to which any piece of information is widely available to all investors and immediately affects stock prices, is the rock-bottom of all main-stream academic researches since at least 1960th.
Moreover, Professor Milgrom’s own staple ‘no-trade theorem’s first assumption is that ‘markets are in a state of efficient equilibrium’, which, of course, can’t happen without EMH main stipulation being correct.
However, if, in reality, all public information is widely available and markets are efficient how comes that in twenty first century the Nobel Committee couldn’t immediately reach such a prominent person (naturally, Milgrom was prominent long before him winning the Sveriges Riksbank Prize in Economic Sciences) to share such an important piece of data and had to send someone right into the center of the Silicon Valley to knock to his house door, instead?
I’m sure our Professor has, yet, another theory to cover that up, of course.
Naturally, thanks to its absurdity, EMH had been confronted by countless researchers and market practitioners long before Milgrom’s anecdote, but, miraculously, it survives and thrives to our days.
The question is ‘why’?
Moreover, Let me ask you another, much broader question:
How is it possible in our hyper-connected society, standing on a verge of the ‘singularity event’, that all those academicians, which advise governments bureaucrats on the contemporary policies, continue to use theoretical postulates, which were formulated by the nineteenth or, even, eighteen centuries economists?
Is that because the ‘scientific elite’ is too old and too well shielded from the real life by numerous protective layers of outdated social institutions?
Would they change their ridiculous theories after its erupt directly into their faces following another self-inflicted ‘economic crisis’, like the one we are living through right now?
I do not think so.
What can we — entrepreneurs — do about that and why?
The ‘why’ part is pretty simple. It’s because politicians all over the world continue to use those anachronistic theories to set their ruinous policies to run our businesses into the ground.
We need an antidote and we need it now.
Obviously, we do not have leisure time and spare money to set a research institution, which will quickly become an another administrative dinosaur. We, sure, can do much better than our grand-parents without human-run bureaucracies.
All we need is to have the fourth-layer Global Macroeconomic Protocol (GMP), which fetch data from multitude of networks, spread across all continents, effectively connecting our local, independent micro-economies into the Earth Decentralized Ledger (EDL).
We will be able to aggregate on EDL accounts such basic macroeconomic information as total world’s equities (expressed in coins / tokens), total world’s debts / liabilities (expressed in staked coins/ tokens) and in / out flows of money (transactions).
From that several key global and regional indicators can be derived such as debts, inflation, balance of trade etc.
Granted, at this early stage we won’t be able to coordinate our multiple economic entities spread across the globe.
Nonetheless, we will be able to measure with all needed precision and in real-time how our individual economic behavior affects the state of international and local productivity and finance.
Sure, we are still several years away from the across-all-chains interoperability but we already can start implementing local solutions on the leading networks such, f.e. as Ethereum and EOS.
We, then, might start to learn how to incorporate those data into our DAO platforms algorithms, which effectively brings to the end the era of the institutionalized sorcery and mathematical divination on which so many now highly respected individuals have built their academic and political careers.
For detailed blockchain industry reports and projects analytics visit our platform: https://svetrating.com
For more information and community talks on this subject join our Whitepapers analysis
Telegram group: https://t.me/joinchat/I5eQ-A6FSC2vXg_PNgFwJw