Between the EMH Castle and the AMH Jungle: A New Ontology of Finance

This article provides a profound analysis of the evolution of economic thought, contrasting the traditional Efficient Markets Hypothesis (EMH) with Andrew Lo's modern Adaptive Markets Hypothesis (AMH). The authors deconstruct the view of markets as static mechanisms, revealing them as dynamic, biological ecosystems subject to the laws of natural selection. The text integrates knowledge from neurobiology, pointing to the role of the amygdala and prefrontal cortex in decision-making processes, and analyzes social phenomena such as the 'Gekko effect.' A key element is the proposal of a new ontology of finance, in which law is treated as code and risk management requires an understanding of regulatory complexity. This is an interdisciplinary perspective on contemporary capital markets and their behavioral foundations.