Irrational Exuberance: Second Edition [Robert J. Shiller] on When the original book released in , Shiller’s prescient analysis of bubble- like. In addition to diagnosing the causes of asset bubbles, Irrational Exuberance recommends urgent Robert J. Shiller, the recipient of the Nobel Prize in economics, is a Winner of the Commonfund Prize for the Best Contribution to. From the publisher: As Robert Shiller’s new preface to his prescient classic on behavioral economics and market volatility asserts, the irrational.

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He does an excellent job at showing how these psychological factors have played a more important role that economic “fundamentals”, as posited by the “rational expectations” school of macroeconomics and finance, are not able to explain credibly.

Ostry Indexing government debt repayments to its GDP has for a long time been seen as a possible way of recession-proofing government balance sheets by shifting the burden of adjustment in downturns from taxpayers to investors with deep pockets. Shiller is not merely a bear—he is a grizzly.

GestionSpain Thai: Orbert more Read less. Irrational Exuberance is more than ever a cogent, chilling, and astonishingly far-seeing analytical work that no one with any money in any market anywhere can afford not to read—and heed. Not too much weight should be put on this flaw though, the overall quality of the work is outstanding, and I highly recommend this book.

Irrational Exuberance

Mar 23, Omar Halabieh rated it really liked it. There’s a problem loading this menu right now. The book is also quite readable. These factors greatly reduce the ability of short selling and hedging’s ability to mitigate the size of bubbles.

Books by Robert J. Shiller

Price-Earnings ratios as a predictor of twenty-year returns. Discount Rates and Saving Rates, 7. Jun 03, Shane rated it really liked it. This first edition of this book, inwas a broad study, drawing on a wide range of published research and historical evidence, of the enormous stock market boom that started around and picked up incredible speed after Amplification mechanisms, naturally-occurring Ponzi processes, that enlarge exuberqnce effects of these precipitating factors, were described.


In particular, he does not see a classic “bubble” in bonds, due to the lack of “exuberance” — prices for bonds are being bid up reluctantly by investors, he says, which is not the formula for a bubble. In Chapter Five he talks about how booms are like Ponzi schemes–and there is sometimes fraud and sometimes just people telling a story that is not supported by any evidence. Thanks for telling us about the j.hiller. But in this important and timely book, Shiller argues that, rather than condemning finance, we need to reclaim it for the common good.

My book, Finance and the Good SocietyPrinceton University Press, discusses moral issues for our society in the wake of irrational exuberance. I highly recommend this robrrt to anyone who wants to understand what’s behind the current anxiety, turmoil, and hopes, for a brighter financial future for all Americans.

The book was then sent to the USA and duly returned.

Studio Emka Portuguese Brazil: Withoutabox Submit to Film Festivals. With Shiller sharing a lot of time in the news, I decided to read the book that made him famous.

To ask other readers questions about Irrational Exuberanceplease sign up. From Irrational Exuberance2d ed. When growth is strong, and the government’s revenues are high, the return on the GDP-linked bond would increase in line with repayment capacity. Eugene Famathe Robert R. Quotes from Irrational Exuber Shiller is the Stanley B. The book argued that the boom represented a speculative bubble, not grounded in sensible economic fundamentals.

This reviewer remembers having read the first edition of this book back when iirrational first came out in either orjust before the stock market crash of Bby trivia or quizzes yet.

Irrational Exuberance by Robert J. Shiller

Shiller is a great empiricist, and tests out efficient markets hypothesis through various econometric tests and survey data. Pulsenomics offers regular surveys related to market sentiment.


For example, he cites the use, by monetary authorities, of “gently” higher interest rates. While economists believe that future prices of financial and real assets are unpredictable, they believe that after the fact we can explain the changes in prices: The most complete treatment of bubbles I’ve read.

I didn’t enjoy it at all. Additionally, Shiller does alot of searches through news and media in order to see if the news portion of efficient markets theory holds i. Stulz In the fall offifteen of the world’s leading economists–representing the broadest spectrum of economic opinion–gathered at New Hampshire’s Squam Lake.

It opened up a whole new way of understanding human behaviour, especially in relation to economics and finance. Shiller also warns that global house prices are in bubble territory and that US Stock prices are high. I think he’s absolutely right that they’re not efficient, but is it time to sell? They get very close but don’t offer satisfying results. There are no discussion topics on this book yet. Schiller though drills down into more psychological numerically as well as analyzing these in detail.

Resor Professor of Economics at Yale University. Our financial market shares in this irrationality, despite what experts want to tell us. We’ll see how that latest prediction turns out, but regardless in this book Shiller presents a compelling argument against the efficiency of markets and for applying psychology, sociology, and history to our understanding of market dynamics. The economic system is filled with trickery, and everyone has needs to know that.

The reputation of the financial industry could hardly be worse than it is today in the painful aftermath of the financial crisis.