Irrational Exuberance

In this book, Robert J. Shiller examines the forces that drive market volatility, including cultural, psychological, and structural factors.

He discusses how events such as technological advancements and demographic changes can precipitate market bubbles, and how these bubbles are reinforced by media coverage and 'new era' economic thinking.

The book also explores psychological anchors and herd behavior, as well as attempts to rationalize market exuberance through theories like efficient markets and random walks.

Shiller provides prescriptions for policy changes and investor strategies to mitigate the effects of speculative volatility.