Discover millions of ebooks, audiobooks, and so much more with a free trial

Only $11.99/month after trial. Cancel anytime.

Irrational Exuberance: Revised and Expanded Third Edition
Irrational Exuberance: Revised and Expanded Third Edition
Irrational Exuberance: Revised and Expanded Third Edition
Ebook652 pages11 hours

Irrational Exuberance: Revised and Expanded Third Edition

Rating: 4 out of 5 stars

4/5

()

Read preview

About this ebook

Why the irrational exuberance of investors hasn't disappeared since the financial crisis

In this revised, updated, and expanded edition of his New York Times bestseller, Nobel Prize–winning economist Robert Shiller, who warned of both the tech and housing bubbles, cautions that signs of irrational exuberance among investors have only increased since the 2008–9 financial crisis. With high stock and bond prices and the rising cost of housing, the post-subprime boom may well turn out to be another illustration of Shiller's influential argument that psychologically driven volatility is an inherent characteristic of all asset markets. In other words, Irrational Exuberance is as relevant as ever. Previous editions covered the stock and housing markets—and famously predicted their crashes. This edition expands its coverage to include the bond market, so that the book now addresses all of the major investment markets. It also includes updated data throughout, as well as Shiller's 2013 Nobel Prize lecture, which places the book in broader context. In addition to diagnosing the causes of asset bubbles, Irrational Exuberance recommends urgent policy changes to lessen their likelihood and severity—and suggests ways that individuals can decrease their risk before the next bubble bursts. No one whose future depends on a retirement account, a house, or other investments can afford not to read this book.

LanguageEnglish
Release dateJan 25, 2015
ISBN9781400865536

Read more from Robert J. Shiller

Related to Irrational Exuberance

Related ebooks

Economics For You

View More

Related articles

Reviews for Irrational Exuberance

Rating: 3.9069768682170545 out of 5 stars
4/5

129 ratings6 reviews

What did you think?

Tap to rate

Review must be at least 10 words

  • Rating: 4 out of 5 stars
    4/5
    Great book. Explains the mentality and economic principles behind bubbles, especially the recent tech and housing bubbles.
  • Rating: 5 out of 5 stars
    5/5
    A great overview of behavioral finance written by one of the greatest economists of all time.. It is heavy reading, but highly recommended
  • Rating: 4 out of 5 stars
    4/5
    I couldn't resist a book with a chapter called, 'Naturally Occurring Ponzi Processes'. That has to be my favourite title for anything in the last 10 years. Talk about the what that explains everything. "Donna, what happened to you? Are you just another fuck-up? Is that it? What happened to you?" "No. No! It's those naturally occurring ponzi processes. They get me every time. And now...(exhale)...they got me that one time too many." This book has a lot of information you don't know you need to know, explained clearly. Even if you have no money, and the taxman doesn't talk to you about poetry, it's good to be mindful of the steps in a random walk.

    1 person found this helpful

  • Rating: 5 out of 5 stars
    5/5
    The rarest of beasts: a book by an academic economist that's approachable, clear and polymathic. Shiller weaves a narrative that includes social trends, psychology, history, behaviour theory, business fundamentals and government policy. Peppered with terrific insights and anecdotes, he makes a clear case for why 'efficient market theory' in investment is just plain wrong. A genuinely illuminating and entertaining read.

    1 person found this helpful

  • Rating: 4 out of 5 stars
    4/5
    It is good to be right. An exceptional book that provided me with a different mathematical model with which to look at the stock market. The author successfully integrates arguments from history, psychology, and economics to demonstrate how the "New Economy" was neither new nor economically viable. An excellent example of an academic creating an accessible book that becomes a best seller without resorting to excessive journalistic tendancies.
  • Rating: 4 out of 5 stars
    4/5
    The book was well written and straightforward in its presentation and premises. Although one can't help but agree with the author's conclusion of a stock market bubble and its long-term impact, the author presents his psychological/sociological interpretation without basis far too often. I would have liked to see more substantiation of investor behavior and their motives; too often the author made assumptions about investor motivation.

Book preview

Irrational Exuberance - Robert J. Shiller

y ^book_preview_excerpt.html}M$r_)/@}/rHp8|8D=Qݕ]oUNs^ZX^z䍽 㜈CɆqf*?"#ND٧q~٧8S;uWx3XP}|{7GÏon^zݗՋA#y͏/o^|]W?o?u^ۮ QVF7 }Ǿ clSb\j7oҗmtC~v#_o RMCm8[y0VTBU5CU^>nc1Sw5~jjk}r2Oa/>yO3qlm'[Ի6Z͋7}ªաnI?ط$o0U|K1\{WU9jۇ1LBճ涕9ɇsi;0, S?ϭu0%!Vax]m> c0w~2Ρ) ׽Ll+Տ𓺊Cnډ/uGY([ޟ'ݲx[77'28YC}²# `K" 0g+^pQdNq-D 'g)/\T"OC(ed" <fxGġ ۶:6O?Ș&4O:?GB|EGvXa7w6xnFluիrU]bdQ]u)$b @yWS }qpyeLƐ䝫j:u* :N.Z8!]?ȷ]d xuLv7FdQE dgm+wYR-SDݶPRQPkl,~ hZ ;9u'؎AF!]:kχilw^=zW |6g?|,{*W"Qk>XV?[ gg aZ寯] }̵拞4 M}}zd ן?:4|vM>퐍|_Nճin{O}㫯QD{ MU?x]}^Ou7dWm),,m[_ 2B_?&"ͱE js.ĿwsȻ,'t$XaI;69u2"=7bqÛ<_|W=WO>zɣ'WwQcqUwHr~P]2G299-(#oNmA>D" jQԅ4Ӈ_<Ǐ]?y_ѣG~(f,_}'>H?Ȋ\ h?jY#RP"w أ}y|~NR8g6 5D"W0M/"I'mru_=Z{(0=;ݤ>|P=>>A~zT=,AfKKZ g9e\|vGg]3@Tضsj& CǗ={T׀fB=MAzŊ0 @ce= "*)(hBl0ŘerkC]|0)R}gL: (Y?} (oWd 0$E 1,  S5݈zϦ=-uї Ǩl䄈Glf3Y?6T ^VH}xYs =k nT,їˀL4u(?a ?] d/*B頾 .- cMNI=&^FzU݌qC'*G0M+#M~vˍ)K?GD?)?ўɟV&3YlE=wNۛŜ1)|%Kg$cco'^su\ ޥ$N"|L>}p6$_ҥDꓪ`,CNWvi4ߗF!)!~TMl:JE3{0CŃe [\ ww+궱,fk)=ChuV݀W Bpv](чX(# CQu'TLY F:+J!F5ȈRm57t'?]!ȟ'ZHtGKԇ#k%99.ժdן=G RΆЂ bu0PS9Ɵ`W^V^נMLmêjU< 7AlfKhVg~#kIAhYc3u+:E r2^Fs kM9'jcPN-1)rlB8 pզ^& v6]2 DםV9[ N@+Ujdn+bU.l#q1ԘϺ˞|3t]}l2ÆC9y;/çrbQBBFxlSLh~4|\s Ҿ9? A4+d,].~J-A!=܌EmsLiܕ04V~6'4UGߕ>TQiRa"s|;nXQ ł$-{xċׁL==.74Y0 rpAwq=M;^h®PQ/Vg PF&1⭢!vAɡމٞ%ZV=wlݹ(N5J?R4[?0F_h`,ZUܨO$޷+uYeO==M?aRZ~yl,7խl laTms,u'9LpS o-/ 1" >̻gPRCɯx?({.p [UG/?"wU1J78|'0(O)˧‘@l3XEHO:S60cv^i8f*1G]EcOe' [Y[r&ID?o[qy_G\=P(E\>@u<8[Wu\7j4$bƘ=>r7w^:="\*1uq*Wϑp\r7A)PiTp4)!O+i'-Nav_A~ChYz` Dv~(ǑŒ#.t*K}]}o 0O)|Νf Z1_L#IN 1a qHɘ7;$81(K#@q#7 BρN-b*?&Zm[ܓ*N6FVIa+%T`hZ&rv';@Z]}K^˃VMx51v}HYY_#{O,7Ͳ7bk-maz%>F5s)k}SDFc5Ww\1z$t 蘱G&24zO^9!~25C7X)”Kܽ M}_: G\LmH wcEDAJ0vbhڽ) ۺEY13zk"kj{|3tCT}+_N˙kF1"j&6Rދ%,zsY~"'l+e|dSE"nDett1QUҙIݙ{_'@"eu b_1WHG/`(o= ?G_LS$U(;p;mN @ນ>.$jޕs ZR՞/:qȹ lߕ+o vBBGWlM{o1v3#$֔uvVe$d xi3wENd(}ҸQfX>3z)>_QY8E{7LHdbI5ATrڝSHrplߕ2OwhsG$Je@cdҔO uy '׭VEs|7pSsD16:]gD^;} C|@26fN$<F{4OH6o?(qI.;vEG*S2Pn87h$?9ւGO*%yR?&O_bozvAwY&20Wq%BƜ@Hç!,w8kŶWxV>zKUNh,0'eeqle[R##\L%2Cpط^xͼ5Aʾڊ7UBlt䐩fQg Y>hAQ5a9k\,B6g"nsudw#cE9Hg9YL'upɯ-^*$m fJ ʢE2 s1-di=dǡ>&zQ 87fDۊ+o .)Z8$d[@)'Lɡ0^-lIsdwkU6i۵N~&+@ELjv!9sơQN9pzERHҐTkZ 64
V ,%nm1vFnABl4U\4vѩ au$*#7Y.u&sZ!n,N XԾe:;$Dhc8 mBe<;,rov8G.0Xx)'Kl5~MLq: w)`HAL G "28L&DDz)UŨԅԜA%d핸d x %ЪlǍD*sSx9Gh( [~HÕYKl^jpoF5N$0*|0.UPz n7þp\4|[}]9E3ESgk1wMN..X0#bNA`p'e:D0;yp2z.ey`$a^3SHXXyMmr)\c~{PfwT^IBp<趏b03Z0W ؂LtroT-V.q J^KђU3^_:٢U;qEh2B_AvjNu~KWii4f9[{B๠=9'4آW8v:JJlTR(Fw$4ɘ\GmM.-x9TtK;}M2Uź|]jdּUB&ʜ89D9uAd$H5K|v07 ew-ra5g;?|ѣ_wPM?I,\4x"0&!nC9ٷDiYݱ(~`w88hHcE`)KeM3eݠ$! AdWR_z:=RJzKSmF-_TxP2r{Zi:䈱f&2ފ:]w(;]w_ |9NM!(:01uyb)`6g 9#e*b0SRYd:eFM-OC?Ԝ]_ۊh_n@wVvrۢqfm~Ģ_\JE"*TLUt<|S\~rCԅ|3B: IÄ|"H~sD3։Mnx)ס _(aTGK D"›81k6)bm@J"\VtrWSOνA8Ǘf,,١ 7$Or U' X mQOz4훕MN1ܛRx#h65~@5U2`HKiOmKNͫ"fP|9Nw냌U2C$Qޡ~nxQGIB~Ba ,L0IWVKBneEWm&g Zسvu1֮^N3 .h/5Cy{2G 7Eb5Hr&Jnpx؄ǂZv+z ^&Xm"HH(YQ A\2V5\@ uA1 \{iY"i59au+/doЯmO鱋/Ԧ>|I0fI[Xn"9`igO>]W)K舒D XA`Vc٥Ξ"O>yOs?^d{F=+G¦3KC*Yߎ#=!{#I! 茥kyy!.eoDDvEG w~5Խ] ZNgY f}"w+rهI%x;NNX"v |0KK/E`t֣<{iYmZ}15)& o~0Au6Y܆׷-Kc˲>6E3GG KH2[qLd1n]Pp#ʲU5w jPUw)mM) p`^x::vQ:;䍲`U1tU_D\7*q1-?RE*&&-{MKĒxDŽmDh r[i71zZ +<׎ K2Dex@[)[FBk洇 H"F xZ`1S{vDB%Fs7谠X\eQ`D*ZΙ^_CO{Iz:oA稛h)-z8|6tZ730&ł<bIu,bL9JOeB̖ p]5nA2Vp j@Q{[X| AyE W| )vByIk v31MצnjDG|tj)p1^bN5|G|PJӑ@W%drIL$IE?pOb"D1t6MSJny}.;`!x?RY<Hrw=UW9uYfs<_rw 3Y2-Ze1W<7g]$V(9RV !`0m0 wSh"nn\2ȔvZ5zʵY`<u~{MYW$-("Vzm0Jb0ծfXrks1 l%m? kB:Th#Rs{E=].$hT@QGp.KSrb Qu{2ԃGzxɲq_Q@UrLЀp%fė,-a'˸Yz(+e&bxl:0ˁ]3J_~ qo WqOVӇeD ;U|#l |ρ*#m;N_ُJ'M(Lh]ۡq]Ud=uE\6[ᥒ8*.Ul5fhzjOFg~h F[Et^ƘhLqlKT8B|_I5SceF]EPڲ";5 YLLWV$b-.Ea-%Ovqv[YWCDlO6qPރ#B.48Yn+^Lkƞz! c"{up (,>^i?Y8ؖ;= 85z'!. qŔ#W.f$ ?~izw@qqSɆvgj'Xn {? a>ɟS5owBF @sw=M r(2 4ŝE~YY}[joO^ˆwryՅ/(v+%n۠M4&vj(yEW vo"V QZ3%y\2Wp)Zrx9[Ze4֯X`K pxVld #ifT0na`/+7G];uL7Zg@<[n>g1djM~RM7v[k3=A=#ry*WZlSa޽/\̙p]r=1('rWz<(3kTKx=&.ԍ-U =% Fe(.J#0h;倫d&R1Zpr1j]${_v=f>rV V+l8OYo6IE  bdɛV^KRS'fb.v $ȕD%tcC1r9NNnB 34e Zsbw6,6Ζ&Vy+D܊&i.ڹnŧ>`DZHHY6|'>Ԉ;]PhT)CR& 8[ 9݆:TAtςh7l)؈OyO_F̬GӏK_$HOQ\ʠ= 1r~=e26:#օL,وA9["*X-F,~e=ҥV;gp[§d2 'C0{xzЋj_ͥtsUH|RԢHyˆnV6< ѱR.F\T[˒je)6݋9E}H2%Lޕf)H;_%yXSL&D2@9~kUZJmFTbcwO@BfǎEm) ,w 23G`}2p'05"vm"VXuK=pzՊMTh秆^صG x +] iEZ:,OΪ=wQ[ kȺ;jvq]$ˊ_a=O5x !x6NP4};W+߮}YT-EJ.@xaEHpR)Et7K RmEUhW`@?Mex R>5c 6U8gkib&ʃz@ô,Ҳb֢*ؾ d:]"h'/8iJ{jOKԜ,()ؿ+KM?8qe~vE=[۸r Aeep j@Gl؆ s폨W{٭`q6>a^Yk4 f[ NBԛ)'<_=;"LJtY4'i}kR1ixxPf+QSJE}b&35N=wsvm4,䶛K$èӒZںg=Ykh.{ #k T"6t] "C1%bTXK:KH5iۆjV0TWynY[mSRJ+@Z seR̙NWPBu󔳷VQ'V&]p#K%ߦ⌙ wN5$>1uZIh2/uu^`O2݆wZ:Ys~ƽ=90-whsł|a|jX,G~W> BR"\' ,$9XTņRrӭ=[B^ yDǢX0ݒ>C!i@8mmgJBA& 2"@Յ W[ZD9IҌaaT,vxa)ÄԇFJgHI49H}1Lz#.֝=M9{T\0d,ҵcTs^wSB0=D/n;.;3;2;wI@^g.,3~Al,hB|(ZK_I_ZȞ./|~sofW9ͫ@I*rb~hN3h+<6&zІeM6Z"6ktxm,"T* l3͘ V\ Ugћi)u8C 3aCDVF'R7h64;BxeFd^/W!Lfe}=ZO)8&GKo &xud2XɨBOk#Ws@*]Gǚ)z@\ĨNc?DCJJkmxv쪩<7yG h}֯%+s$%Yquf$MIq$HATM 'ᢻX*ݘψpQ c  ߢODYHJ>AHg[XMHPusF`ԄG2*2]#Iعʌ{vP&V[m1 W>$mF.!'_"C*Jꆔƞ6}4n:^0< Qu[Dyq藯2.L|+u/KDrS}#z ךR&*gm A yis60P[iUZO>p5*Ê'}RܨҏOQssʬwA3[N׊}.1e(NN~ s?&KrU/;ڝ*&PR:޹у4(r=ߕ]3^;D2B7Z\ 2XYV_yNJ1e&Q+7/rIY#]2ޘMn3TicOuH-倹Do-.$ 5VzI<(15$%ErJz@kFwX)u<sI,| 9`XVy8ۃ>X6{%59=*^J>xU ͚&2e1zZ[O[-9!K<\ij>54Ij}J%~]}9F!B,5ډ{\Y͇N #"%.T4pԮ")^zYb$oΎ~̩sV1NY|7ɫn_ m*|i-Wh[~i]K njvHZ^dϯ#5{(u_ŅQ3Zzhn2bp׭DF aXU[vrDPtۖ<j _$"fVo Zk3R:ʲ˭&u!/#!ΣK䏍`!{& vER1l1R2Sz`LLעba3 )jV^f>/ ]`V _(k1q)?mWyApsH' Q*0ŭ` Z"]_p@Ldvf*E^K*MN{\}}ѧ| Qq vajV㶸-XF1$¶/;6fI/ O!@j KvK Idhzj𠹕`kli_lDdm[gאA@$@0vP2([^K*eT8P7;iv6'݈-hx!Hhk3M86vktezTٯP2e^"#hu`lT`8;egw:7jKȓu^/VpLZĤHbue]*T--4 FtںNÎ n'I$Y+%[P面ӰNKԥZ;+1i(D]3Ock7POJ/-K*3#ٕ,l9oUO8ƹ6Qy^6I42rE@_Q;ET
Enjoying the preview?
Page 1 of 1