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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Other books have a higher monetary value but this book has personal value. Random House Korea Portuguese: He is arguing that while there is no fraud going on that the same mentality and dynamic is occurring when we have amplifying factors that push stock roberg up. Sep 11, Daniel rated it it was amazing.
Our stock markets are markets for claims on corporate dividends, and yet the latter are only a few percent of national incomes, only 3 percent in the United States. He chooses his words carefully, always saying the economy is unpredictable while being heralded as irraional prophet. Although maybe it was the publication of this book which led to the crash of the e-commerce bubble ofwhich might have proven him right anyway.
Irrational Exuberance is an invaluable read for investors, but also particularly for economic students. Through this data Shiller shows how irrational, An excellent inbetween book. The book is 4-stars of content, with a subtraction of a star for the rambling style in which the book is written.
Aug 02, Louis rated it liked it Shelves: Once again providing an enormous service, Shiller gives us a powerful means to convert our ordinary riches j.suiller a level of economic security, equity, and growth never before seen. And so it happened.
Irrational Exuberance by Robert J. Shiller
Akerlof and Shiller reassert the necessity of an active government role in economic policymaking by recovering the idea of animal spirits, a term John Maynard Keynes used to describe the gloom and despondence that led to the Great Depression and the changing psychology that accompanied recovery.
There were also no particularly specific policy prescriptions for dealing with “irrational exuberance” in speculative markets, mostly just a general suggestion that the various potential influences on investor behavior chronicled in the book be taken into account when devising future financial policy.
I wonder if it’s outdated or it’s still true that markets are over priced. Shiller really digs into the complete picture of economics, delving, or forging even, into the area of psychology in order to fill-out the frame.
Igoe – LibraryThing The book was well written and straightforward in its presentation and premises. Read reviews that mention stock market irrational exuberance real estate robert shiller second edition new era nobel prize professor shiller long term psychological factors wall street stock prices speculative bubbles third edition well written social security federal reserve alan greenspan efficient market home prices.
The second edition,added an analysis of the real estate bubble as similar to the stock market bubble that preceded it, and warned that “Significant further rises in these markets could lead, eventually, to even more significant declines.
The third edition of Irrational Exuberance was published in and included new material on bonds. He said he didn’t know. In j.shilleer to providing historical context in regard to these markets, the book also does an excellent job at explaining, through the lens of economic psychology, why bubbles occur.
Princeton University Press, This first edition of this book was 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 We could have a booming economy and stock market for another 10 years, followed not by a bubble bursting, but by a slow deflation of sorts where average returns on stocks are low or negative.
My review is both about the contents and how I got this book into my collection. One may wonder whether such valuations are sustainable, especially while bearing in mind that such valuations have historically been proven to be unsustainable: I guess the central theme is that asset classes will become overvalued, sometimes massively, and we can use long term historical data to gauge the degree to which this happens.
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.
All and all the book does an excellent job at examining these psychological factors. The second edition of Irrational Exuberance was published in and was updated to cover the housing bubble. China Times Publishers, Taiwan Czech: Shiller also describes how irrational enthusiasm, mixed in with a convincing story can overwhelm quantitative fact and forecasts driving self-creating bubbles. Maeil Business Newspaper Macedonian: Polskie Towarzystwo Ekonomiczne Portuguese: