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Naked Economics Chapter 3 Essay

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Journal 3 Chapter three had great information about how money is transferred from savers and borrowers and the different ways to go about it. One specific point I find interesting is the idea of information efficiency. There are three levels of efficiency that financial markets can achieve. First, the weak-form efficiency category states that all past price information is already reflected in the price. This means everyone knows the past prices, so the price has already taken the trend or assumed change already into consideration. Semistrong-form efficiency is the second level which consists of everything in the first category and all information that is public. The third category is strong-form efficiency. This consists of everything in the

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