Record - DRA Web2

Place Hold

Library:	Call Number:	Location:	Status:	Date Due:
Rochester Public Library	332.63222 SH621I	Adult Non Fiction, 2nd Floor	Available

Summary :

In light of Federal Reserve chairman Greenspan's famous reference to the volatile stock market's "irrational exuberance," a Yale U. economics professor challenges investors and policymakers to think beyond the market efficiency model to fathom the "new era economy." The hardcover edition (Princeton U. Press, 2000) was a bestseller. Annotation c. Book News, Inc., Portland, OR (booknews.com) Distributed by Syndetic Solutions, Inc.

Author Biography

Robert J. Shiller is the Stanley B. Resor Professor of Economics at Yale University. Also the author of the award-winning "Macro Markets" as well as "Market Volatility", he lives in New Haven, Connecticut. Distributed by Syndetic Solutions, Inc.

Table of Contents

List of Figures and Tables	p. ix
Preface	p. xi
Acknowledgments	p. xix
1 The Stock Market Level in Historical Perspective	p. 3
Part 1 Structural Factors
2 Precipitating Factors: The Internet, the Baby Boom, and Other Events	p. 17
3 Amplification Mechanisms: Naturally Occurring Ponzi Processes	p. 44
Part 2 Cultural Factors
4 The News Media	p. 71
5 New Era Economic Thinking	p. 96
6 New Eras and Bubbles around the World	p. 118
Part 3 Psychological Factors
7 Psychological Anchors for the Market	p. 135
8 Herd Behavior and Epidemics	p. 148
Part 4 Attempts to Rationalize Exuberance
9 Efficient Markets, Random Walks, and Bubbles	p. 171
10 Investor Learning--and Unlearning	p. 191
Part 5 A Call to Action
11 Speculative Volatility in a Free Society	p. 203
Notes	p. 235
References	p. 269
Index	p. 283

Distributed by Syndetic Solutions, Inc.

Choice Reviews

In this timely book, Shiller (Yale) skillfully employs data on market prices, earnings, and dividends to suggest that historically, by any standard, the lofty levels to which common stocks have been carried, at least until recently, are indeed "irrational exuberance" or an old-fashioned mania before the markets once again try to align with performance of the real economy. Moreover, as Shiller points out, not all manias end in a 1929-type crash. As one example, in June 1901, the price/earnings ratio reached 25.2 for the first time. For the next decade stocks bounced around that level and then declined (WW I, of course, intervened). By 1920, however, the stock market had lost 60 percent of its June 1901 real value. A boom followed, ending in the spectacular crash of 1929. This historical perspective is a useful reminder of how long the long run can be for those who argue that stocks are the best long-term investment. Shiller also provides an interesting chapter on the role of the media as a feedback mechanism and skillfully blends the findings of psychologists into the fabric of stock market mania. This thought-provoking and sobering book is a useful reminder that investors need to reassess the volatility in the equity markets. Recommended for public and academic library collections. W. S. Curran; Trinity College (CT) Distributed by Syndetic Solutions, Inc.

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