Robert Shiller is the Arthur M. Okun Professor of Economics at Yale University. In this video interview, he describes the role played in our economy by “animal spirits,” the subject of his new book written with George Akerlof, the Koshland Professor of Economics at the University of California, Berkeley. The text below is adapted from their book, Animal Spirits.
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Video: Understanding Animal Spirits
Economist Robert J. Shiller takes us inside his new book, written with George Akerlof
From Animal Spirits
For years, the world economy has been on a roller coaster. Yet not until it began to veer off the tracks did the passengers realize that they had embarked on a wild ride. Abetted by their thoughtlessness, the amusement park’s management didn’t set limits on how high they could go or even provide safety equipment.
Why didn’t people recognize the warning signs until banks collapsed, jobs vanished, and millions of mortgages were foreclosed? The...