Irrational Optimism. How Reckless Behavior Governs Markets

Yale University professor and economist Robert Shiller is well known worldwide and has an outstanding academic reputation. The author of many bestsellers offers a new perspective on the nature of speculative bubbles in the stock market and the real estate market. People tend to underestimate the role of irrational factors in decision-making when buying or selling housing or stocks. Nevertheless, these aspects increasingly influence the development of such industries and, consequently, the economy as a whole.
Armed with impressive statistical tools, the author uses figures to show what primarily generates peak situations in the markets. Describing historical market crashes, Shiller highlights how media publications, speeches from prominent figures, herd mentality, or cultural traditions gradually shape the dynamics of events.
Despite being based on clear mathematical and econometric calculations, the book is characterized by a light narrative style. This is no coincidence, as it is directed at a fairly broad audience, not just specialists or market participants. The book will be of interest to anyone intending to buy or sell real estate, those actively invited to invest in various banks, funds, mutual investment funds, etc.