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Shiller, Robert J.

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4 articles of this author have been cited in the European Press Review so far.

Il Sole 24 Ore - Italy | 19/07/2013

Stock market bubbles burst and reappear

Stock markets in Europe and the US announced that share prices were soaring on Thursday. Investors were reacting to the positive economic data from the US, a recommitment by Fed chief Ben Bernanke to the expansive monetary policy and the ECB relaxing its collateral rules for central-bank loans. The era of speculative bubbles is not yet over, warns US economist Robert J. Shiller in an article published in the liberal business paper Il Sole 24 Ore: "You might think that we have been living in a post-bubble world since the collapse in 2006 of the biggest-ever worldwide real-estate bubble and the end of a major worldwide stock-market bubble the following year. ... But speculative bubbles are not so easily ended. ... A new speculative bubble can appear anywhere if a new story about the economy appears, and if it has enough narrative strength to spark a new contagion of investor thinking. ... 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."

Jornal de Negócios - Portugal | 09/04/2012

Robert Shiller on the strength of euro symbolism

The common symbols on the euro banknotes could prevent the disintegration of Europe as a political entity even in the event that the Eurozone does collapse, writes US economist Robert J. Shiller in the business paper Jornal de Negócios: "Every currency union chooses symbols of common cultural values for its coins and notes, and these symbols become part of the sense of shared identity. ... The euro notes feature bridges as they appeared throughout Europe in various epochs, rather than images of actual structures that might seem to imply preferential regard for some countries. ... But the bridges remain symbols of European culture, in which presumably all Europeans share. ... Even if the Eurozone breaks up, each European country could adopt a different currency but retain common symbols. ... If Europe can keep these symbols alive, even a Eurozone breakup would not have the dire political consequences for Europe that so many predict."

Jornal de Negócios - Portugal | 08/02/2011

Robert Shiller on economic research and common sense

The global economic and financial crisis has led to a boom in popular economics research, US economist Robert James Shiller writes, finding the phenomenon paradoxical in an article published by business paper Jornal de Negócios: "This boom in popular economics comes at a time when the general public seems to have lost faith in professional economists - because almost all of us failed to predict, or even warn of, the current economic crisis, the biggest since the Great Depression. ... And, in truth, the public is right: while there is a somewhat scientific basis for these models, they can go spectacularly wrong. Sometimes we need to turn off autopilot and think for ourselves, and when a crisis occurs, use our best human intellect. ... [Because] popular economics facilitates an exchange between specialised economists and the broader public - a dialogue that has never been more important. After all, most economists did not see this crisis coming in part because they had removed themselves from what real-world people were doing and thinking."

Jornal de Negócios - Portugal | 06/12/2010

Robert Shiller recommends more borrowing over consolidation

Despite the global economic crisis the interest rates on loans have sunk to a historical low in many countries. States should use this opportunity to take out cheap loans instead of consolidating their budgets, writes US economist Robert James Shiller in the business paper Jornal de Negócios: "[The] real long-term interest rate is a direct measure of the cost of borrowing to conduct business, launch new enterprises, or expand existing ones - and its levels now fly in the face of all the talk about the need to slash government deficits. ... The low level of real interest rates does not appear to be due to the 2007-2009 financial crisis. ... Instead, low long-term real interest rates appear to reflect a general failure by governments over the years to use the borrowing opportunities that the inflation-indexed markets present to them. This implies an arbitrage opportunity for governments: borrow massively at these low (or even negative) real interest rates, and invest the proceeds in positive-returning projects, such as infrastructure or education. ... It is strange that so many governments are now emphasizing fiscal consolidation, when they should be increasing their borrowing to take advantage of rock-bottom real interest rates."

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