WHEN HE was chairman of the US Federal Reserve board, Alan Greenspan used the now famous phrase " irrational exuberance
" to describe the market boom of the 1990s.
Harvard political scientist Harvey Mansfield writes that while individual economists are generally sober and cautious, when they get together they give way to boyish, irrational exuberance
over the accomplishments and prospects of their discipline.
He told delegates that "irrational exuberance
" in recent years has been replaced by "irrational pessimism", and levels of anxiety are at "ridiculous proportions".
Chapters include boxed points of interest such as former Federal Reserve Chairman Alan Greenspan's "irrational exuberance
" lecture, worked examples, and exercises with a selected answer key.
It can neither prevent "irrational exuberance
", as the tech, real estate and credit bubbles have shown, nor effectively fight off deflation when exuberance switches into panic.
The markets now veer wildly between irrational exuberance
and needless despair.
The more pressing need is for a heightened sense of fiscal responsibility, and less irrational exuberance
, in the securities and lending industries - and among consumers who are paying now for failing to look before they leaped.
In the irrational exuberance
department, Leo Romero bought a house in Long Beach, CA, where he can fight his inner demons without the neighbors calling the cops all the time.
Shiller, author of the acclaimed Irrational Exuberance
(2002), will address the nascent development of real estate derivatives, including his new real estate hedge fund, as a means of reducing the volatility of the real estate market and promoting price efficiency.
The latest liquidity swing started in December 1996, when then-Federal Reserve Chairman Alan Greenspan voiced concerns over "irrational exuberance
" in asset values.
The result: curiosity, suspicion, and irrational exuberance
Author: Robert Shiller Publisher: Princeton University Press Price: 17.95 [pounds sterling] ISBN: 0691123357