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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Aug 14, Oren rated it really liked it. As an example, there is a section which talks about epidemic diseases and how they spread. With thorough research and groundbreaking findings, Prof. Both of these, at least to this reviewer, seem particularly weak.

Irrational Exuberance

PaperbackSecondpages. A list of twelve precipitating factors that appear to be its ultimate causes was given. He does identify it as in a bubble, but a strange kind of bubble, since people actually settle for losing money when they buy bonds with negative rates.

It, correctly, pointed out that the stock market was overpriced and that a decline would be reasonable to expect. Through this data Shiller shows how irrational, and self contradicting investment behavior can be. Resor Professor of Economics at Yale University. I should have read that instead, but this was a solid, still relevant and eerily prophetic blast from the past.

Irrational Exuberance: Robert J. Shiller: : Books

Like Kurt Cobain yelling songs about how much he hates his job and fans while growing more popular by the hour. Igoe – LibraryThing The book was well written and straightforward in its presentation and premises. A read that supplemented my fledgling knowledge of finance. Building on the original edition, Shiller draws out the psychological origins of volatility in financial markets, this time folding real estate into his analysis. And also interestingly, there is a claim that stocks do not outperform bonds over the long term, which is contrary to many things I’ve read, although I didn’t j.shiller much data to support that claim.


It is a literature on the bubbles existing in the world of financial markets. One can access an Excel file with the data set used and described in the book on home j.shillsr, building costs, population and interest rates sinceupdated. Shiller is the Stanley Exubreance. Part one of the book considered structural irrationwl behind the boom.

Given the breadth of approaches that he took to make his case, the arguments for some might have been a little bit abbreviated, and, as a result, I don’t think that they’re all airtight.

Why do long term bond prices sometimes change up or down as much?

He said he didn’t know. Economists who believe in the theory of efficient markets argue that when market prices go up or down we should be able to point to fundamental factors that can account for the change in the price. The most important thing to keep in mind as we are experiencing a speculative bubble in the stock market today is that we should not let it distract us from such important tasks.

Shiller speaks very lightly: Finally, he offers some advise on policy makers to deal with speculative bubbles. Aug 30, Aristidis Marousas rated it liked it. Recent Concerns and Policy Proposals, 3.

Another long-run consequence could be a decline in consumer and business confidence, and another, possibly worldwide, recession. English Choose a language for shopping. The changes in thought patterns infect the entire culture and they operate not only directly from past price increases but also from auxiliary cultural changes that the past price increases helped generate.


It is to deepen our understanding of the events we are watching as one bubble gives birth to another.

Irrational Exuberance – Robert J. Shiller – Google Books

Irrationa maybe it was the publication of this book which led to the crash of the e-commerce bubble ofwhich might have proven bh right anyway. We use it in a broader sense to encompass ny kinds of economic manipulation. Additionally, Shiller does alot of searches through news and media in order to see if the news portion of efficient markets theory holds i. Irrationaal France, Champsessais German: A final observation on this third revised edition: For example, it has chapters devoted cultural factors in investing; the effects of the news media; “new era” economic thinking; psychological factors; psychological anchors for the market and herd behavior.

Shiller starts out with three chapters that present statistics showing that stocks and real estate are not investments that people can count on to earn a good long-run return. Resor Professor of Economics at Yale University. That being said, it is slightly dry as the professor just puts out a lot of facts. Shiller warns of significant downside risk to holding long term bonds. May 08, Ankit Bhutani rated it really liked it Shelves: Amazon Restaurants Food delivery from local restaurants.