Irrational Exuberance: Second Edition
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This book argued that the boom represents a speculative bubble, not grounded in sensible economic fundamentals.
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Détails du produit
- 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 1982 and picked up incredible speed after 1995. Although it took as its specific starting point this ongoing boom, it placed it in the context of stock market booms generally, and it also made concrete suggestions regarding policy changes that should be initiated in response to this and other such booms. The book argued that the boom represents a speculative bubble, not grounded in sensible economic fundamentals. Part one of the book considered structural factors behind the boom. A list of twelve precipitating factors that appear to be its ultimate causes was given. Amplification mechanisms, naturally-occurring Ponzi processes, that enlarge the effects of these precipitating factors, were described. Part Two discussed cultural factors, the effects of the news media, and of new era economic thinking. Part Three discussed psychological factors, psychological anchors for the market and herd behavior. Part Four discussed attempts to rationalize exuberance: efficient markets theory and theories that investors are learning. Part Five presented policy options and actions that should be taken. The second edition, 2005, 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 bad outcome could be that eventual declines would result in a substantial increase in the rate of personal bankruptcies, which could lead to a secondary string of bankruptcies of financial institutions as well. Another long-run consequence could be a decline in consumer and business confidence, and another, possibly worldwide, recession. Thus, the second edition of this book was among the first to warn of the global financial crisis that began with the subprime mortgage debacle in 2007.
| Publisher | Princeton University Press |
| Publication date | March 14, 2005 |
| Edition | Second |
| Language | English |
| Print length | 336 pages |
| ISBN-10 | 0691123357 |
| ISBN-13 | 978-0691123356 |
| Item Weight | 1.32 pounds (600 grams) |
| Dimensions | 6.5 x 1.25 x 9.5 inches (16.5 x 3.2 x 24.1 cm) |
À qui est-ce destiné ?
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Investors Seeking Insight
Ideal for investors wanting to understand market trends and psychological influences on investment decisions.
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Economics Students
Beneficial for students studying finance or economics, providing essential analytical perspectives on market behavior.
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Finance Professionals
Useful for financial advisors and analysts aiming to grasp economic bubbles and market psychology effectively.
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Casual Readers
Not suitable for casual readers seeking light literature or entertainment without heavy economic analysis.
DESCRIPTION DU PRODUIT
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Theory Editorial Review
### Editorial Review of "Irrational Exuberance: Second Edition" "Irrational Exuberance," by Robert Schiller, receives a mixed but generally positive reception from readers, particularly for its detailed examination of market performance and the psychological and cultural factors influencing investor behavior. Many reviewers appreciate Schiller's ability to encapsulate complex financial data into digestible narratives, making historical market trends more accessible to readers, even those with limited financial expertise. The structure of the book, wherein Schiller introduces each concept and delves into illustrative historical anecdotes, is often praised for keeping the content engaging. However, readers seeking a deep dive into financial psychology may feel somewhat misled, as the book balances its focus between psychological insights and extensive statistical analysis. Some reviews indicate that the heavy reliance on numbers and graphs can render parts of the book dry or overly detailed, which might detract from the enjoyment for those not enamored with data. The concerns about it appearing outdated—especially in its context surrounding later financial crises—also surfaced in multiple reviews, suggesting that new readers might not connect as deeply with the examples drawn from earlier eras. Despite these critiques, Schiller's alternative take on traditional financial theories—particularly his challenge to the efficient market hypothesis—has resonated with many. Readers who appreciate behavioral finance and innovative perspectives on market dynamics are likely to find value in Schiller's arguments. There appears to be a Consensus that while the book serves as a cornerstone of financial literature, it could benefit from ongoing updates to maintain its relevance as time progresses. Overall, "Irrational Exuberance" is regarded as a worthwhile read for those interested in financial theory, historical market behavior, and the interplay of psychology and economics, although it may not fully satisfy those looking for purely psychological explorations. ### Pros and Cons **
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Avantages
- Engaging narrative structure with historical anecdotes.
- Accessible to readers with limited financial knowledge.
- Offers an alternative view on efficient market theory.
- Well-researched with substantial statistical backing.
Les inconvénients
- Heavy reliance on statistics may make parts of the book dry.
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Caractéristiques et avantages
- Comprehensive analysis of stock market booms since 1982.
- Investigates structural, cultural, and psychological factors behind market behavior.
- Highlights the role of media and economic theories in perpetuating market excess.
- Offers policy recommendations to mitigate financial instability.
- Second edition includes warnings about the real estate bubble.
- Forewarns of potential global financial crises stemming from speculative behavior.
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