92 Quotes by Robert J. Shiller

A major boom in real stock prices in the U.S. after 'Black Tuesday' brought them halfway back to 1929 levels by 1930. This was followed by a second crash, another boom from 1932 to 1937, and a third crash. Speculative bubbles do not end like a short story, novel, or play. There is no final denouement that brings all the strands of a narrative into an impressive final conclusion. In the real world, we never know when the story is over.

The good news is that, at least in economics, I've seen movement away from its overemphasis on mathematical models of purely rational behavior to a more eclectic and commonsense approach: research that is, among other things, more respectful of insights from psychology.

It amazes me how people are often more willing to act based on little or no data than to use data that is a challenge to assemble.

Some of the best theorizing comes after collecting data because then you become aware of another reality.

Somehow, talking to young students brings you back to reality - it should, anyway.

In the short run and for decisions unlikely to have broad impact, it may be more cost effective to use just one expert.

I am worried that the collapse of home prices might turn out to be the most severe since the Great Depression.

Stock prices are likely to be among the prices that are relatively vulnerable to purely social movements because there is no accepted theory by which to understand the worth of stocks....investors have no model or at best a very incomplete model of behavior of prices, dividend, or earnings, of speculative assets.

Economics is (now) about emotion and psychology.