Shiller, who won the Nobel Prize for his contributions to behavioral economics, stresses the importance of narratives in shaping public debate, catalyzing action, and ultimately deciding outcomes.
The book highlights how this phenomenon has affected perceptions of – and responses to – financial crises, housing cycles, automation, and stock-market bubbles.
“We have highly priced markets in the stock market, the bond market and the housing market,”
Apparently, investors believe that this boom is going to last, or at least that other investors think it should last
The Fed’s hope lies in a behavioral economic theory called reverse wealth effect
John Authers Bloomberg 26 oktober 2022