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Tuesday, August 19, 2014

'Irrational Exuberance Meets Secular Stagnation'

Antonio Fatás:

Irrational exuberance meets secular stagnation: Robert Shiller warns us in the New York Times about the potential risks of high stock market valuations in the US. According to Shiller "the United States stock market looks very expensive right now". Brad DeLong and Dean Baker disagree with Shiller and argue that stock prices might look higher than historical averages but this could be ok given other changes in the economic environment. ... But there are ... reasons why the historical average might not be relevant...

    Posted by on Tuesday, August 19, 2014 at 01:42 PM in Economics, Financial System | Permalink  Comments (4)


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