Market Volatility proposes an innovative theory, backed by substantial statistical evidence, on the causes of price fluctuations in speculative markets. It challenges the standard efficient-markets model for explaining asset prices by emphasizing the significant role that popular opinion or psychology can play in price volatility.
Offering detailed analyses of the stock, the bond, and the real estate markets, Shiller discusses the relations of these speculative prices and extends the analysis of speculative markets to macroeconomic activity in general.
Robert J. Shiller is Stanley B. Resor Professor of Economics at the Cowles Foundation, Yale University.
About the Author
Robert J. Shiller is Arthur M. Okun Professor of Economics at Yale University. He is the author of Irrational Exuberance, Animal Spirits: How Human Psychology Drives the Economy and Why It Matters for Global Capitalism (with George B. Akerlof), and other books.
"Shiller's book should be read by anyone with a serious interest in the functioning of markets."
—Richard A. Grasso, President and Chief Operating Officer, New York Stock Exchange
"A specter haunts modern economics: 'individual stocks perform random walks in efficient markets, but the level of the whole market displays no demonstrable efficiency.' Bob Shiller is the key economist in this great debate. Buy his book and think on its contents. Learn what the October 1987 crash was all about."
—Paul Samuelson, Institute Professor, MIT