Exuberancia Irracional by Robert J. Shiller, , available at Book Depository with free delivery worldwide. 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. “Irrational exuberance” is the phrase used by the then-Federal Reserve Board chairman, Alan Greenspan, in a speech given at the American Enterprise Institute .

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The second market slump brought the phrase back into the public eye, where it was much used in hindsightto characterize the excesses of the bygone era. Greenspan wrote in his book that the phrase occurred to him in the bathtub while he was writing a speech.

Greenspan’s speech and Shiller’s book are often viewed as harbingers of future frenzy whether or not they specifically predicted the bubbles and subsequent crashes that followed. Retrieved 4 September This page was last edited on 21 Decemberat It had become a catchphrase of the boom to such an extent that, during the economic recession that followed the stock market collapse ofbumper stickers reading “I want to be irrationally exuberant again” were sighted irraciohal Silicon Valley and elsewhere.

Retrieved 23 August Fedspeak as a Second Language”.

Exuberancia Irracional : Robert J. Shiller :

This phrase is arguably the most famous example of Greenspeak, albeit perhaps an atypical one. He is frequently asked during interviews whether markets are irrationally exuberant as asset prices rise. From Wikipedia, the free encyclopedia. Greenspan’s idea was to obfuscate the Fed Chairman’s true opinion in long irrqcional sentences with obscure words so as to intentionally mute any strong market response.

Retrieved 5 September The Age of Turbulence.


The phrase is often cited in conjunction with criticism of Greenspan’s policies and debate whether he did enough to contain the two major bubbles of those two decades. The Surprising Truth About What Motivates Us ” in the chapter discussing how extrinsic motivation can encourage short-term thinking at the cost of long-term health: Greenspan’s comment was made during a televised speech on December 5, emphasis added in excerpt:.

Author Dan Pink also used the phrase in in his book ” Drive: Shillercalled Bitcoin the best current example of a speculative bubble.

Views Read Edit View history. Irgacional from ” https: It is also used in arguments about whether capitalist free markets are rational. The term gained new currency after the collapse of the US housing market in that led exuberancoa a worldwide financial panic. Irrational Exuberance or Rational Error?

This combination of events caused the phrase at present to be most often associated with the s dot-com bubble and the s US housing bubble although it can be linked to any financial asset bubble or social frenzy phenomena, such as the tulip mania of 17th century Holland. Greenspan’s comment was well remembered, although few heeded the warning.

But how do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions as they have in Japan over the past decade? By using this site, you agree to the Terms of Use and Privacy Policy.

The irony of the phrase and its aftermath lies in Greenspan’s widely held reputation as the most artful practitioner of Fedspeakoften known as Greenspeakin the modern televised era. The further irony was that if it was indeed his intended purpose to “talk markets down” he was later ignored as stock valuations three years later dwarfed the levels at the time of the speech.


Irrational exuberance – Wikipedia

There was some speculation for many years whether Greenspan borrowed the phrase from Shiller without attribution, although Shiller later wrote that he contributed “irrational” at a lunch with Greenspan before the speech but “exuberant” was a previous [1] Greenspan term and it was Greenspan who coined the phrase and not a speech writer.

The phrase was interpreted as a warning that the market might be overvalued. Markets around the world followed. The phrase was also used by Yale professor Robert Shillerwho was reportedly Greenspan’s source for the phrase.

Irrational exuberance

By the mid-to-late s the dot-com losses were recouped and eclipsed by a combination of events, including the s commodities boom and the United States housing irracionaal. The speech coincided with the rise of dedicated financial TV channels around the world that would broadcast his comments live, such as CNBC. However, the recession of onward wiped out these gains.

Clearly, sustained low inflation implies less uncertainty about the future, and lower risk premiums imply higher prices of stocks and other earning assets. He is frequently interviewed as an expert on home prices and shared the Nobel prize in economics in for his work on asset prices.

For the book, see Irrational Exuberance book. Shiller was the co-creator of the Case-Shiller index that tracks US residential housing prices.

What seems to be irrational exuberance is ultimately a bad case of extrinsically motivated myopia”. Retrieved 7 December