Irrational Exuberance: Revised and Expanded Third Edition

✍ Scribed by Robert J. Shiller

• Publisher: Princeton University Press
• Year: 2015
• Tongue: English
• Leaves: 392
• Edition: Revised and Expanded Third
• Category: Library

✦ Synopsis

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.

✦ Table of Contents

Title
Copyright
Contents
List of Figures and Tables
Preface to the Third Edition
Preface to the Second Edition, 2005
Preface to the First Edition, 2000
Acknowledgments
One: The Stock Market in Historical Perspective
Two: The Bond Market in Historical Perspective
Three: The Real Estate Market in Historical Perspective
Part One Structural Factors
Four: Precipitating Factors: The Internet, the Capitalist Explosion, and Other Events
Five: Amplification Mechanisms: Naturally Occurring Ponzi Processes
Part Two Cultural Factors
Six: The News Media
Seven: New Era Economic Thinking
Eight: New Eras and Bubbles around the World
Part Three Psychological Factors
Nine: Psychological Anchors for the Market
Ten: Herd Behavior and Epidemics
Part Four Attempts to Rationalize Exuberance
Eleven: Efficient Markets, Random Walks, and Bubbles
Twelve: Investor Learning—and Unlearning
Part Five A Call to Action
Thirteen: Speculative Volatility in a Free Society
Appendix Nobel Prize Lecture: Speculative Asset Prices
Notes
References
Index