Speculative Market Theory: Analysis And Comparison

Theory of Speculative Markets (TSM) is a very interesting field that attractsmany economists. Recently, the latest development of TSM--Behavior Finance hasbecome a strong competitor of Efficient Markets Hypothesis. More and more economists pay their attention to the related study of investors' behavior, focus on the influence of investors' sentiment on stock volatility and verify the relation between investors' mood and stock price.This thesis focuses on the analysis and comparison of TSM and tries analyzing Chinese stock market in a way advanced by TSM. The analytic frame of the article is composed of six chapters. Chapter 1 introduces Keynes's thought; chapter 2 analyzes Galbraith's view; chapter 3 summarizes Shiller's idea; chapter 4 examines the latestdevelopment of TSM --Behavior Finance; chapter 5 compares and contrasts theirthoughts; chapter 6 tries analyzing Chinese stock market in a new way.