I really don't understand what most of comments are talking about. Mathematical economics are based on the wrong assumption of having "homo economicus" as players. People are psychological, not rational. The current economic theory is like trying to make an strategy fora footbal match assuming that all players run at the speed of light. It borders with the irrelevant. Shiller is trying to make economics useful, not just trying to make it "pretty". He's a pioneer, we need more men like him.
I like his refreshing perspective. You are right, people are psychological, not rational. Social psychology can also be applied to understand the function of cities.
That's the most important point of his approach. Animal spirits, in other words human psyche is far away from the assumption of rational thinking. Behavioral economics are the only way of explaining economics.
It’s surprisingly to see how everyone in the comments assume they could very well take heads on some of the best economists in the world. God you all are such experts aren’t you??
He is absolutely enlightened. I'm amazed by his ability to articulate very complicated things so elegantly and laconic. Terrible problem of my life that sometimes I figure out by myself a lot from what he said. and I know it for days or weeks, after some emotions push me in different state of mind and I don't remember nothing from this understanding pattern. It's feels so wierd, but I also recognize this in my friends, if I explain them some concepts, they understand it completely and seems to be very happy of this knowledge (feel emotions about knowing that emotions drives everything and we lining arround different believes and simulacras), and next day they don't remember that feeling of understanding. Usually on a next day. It's like "common sense" arround us in society against to understand this simple but absolutely essential things. Understanding of things is also some kind of emotion ("aha" moment 🤔), it's not a simple copy-past into your brain.
Inflated P/E ratios can be representative of heavy inflows of money into stocks such as those during the booming period of the late 90s under which there was in fact an exuberance among most participants. So P/E ratios can in fact and do generally move with the amount of enthusiasm in the market.
Sir, please add slides in the video. To all my friend for honorable comments Through out the human history shows that fairy tales became the realities, BF is a new field and a lot question need answers in the field. We must give kind / due attention to every research, this might solve our problems that we are facing in the world. thanks and apology if some one feel it bad
The Ultimate Challenge of Behavioral Economics will be the addressing of generationally passed down mass hysteria-the driver of toxic consumption coupled with a draconian work ethic that are the greatest sources of Pigou’s externalities.
What do the Great Depression, the Tech boom and bust of the 90's and the Sub Prime housing bust and Great Recession all have in common? Easy Credit and lack of regulation. Simple as that. The bust of 87 was a computer glitch as it was newly introduced to trading. In the next decade Demographics will be a major factor as the last of the baby boomers die off. Yet manufacturing tech will lesson that blow to depopulation in North America. But the massive fall in tax revenue will cause great suffering and lack of opportunity for generations to come as they will be taxed to death. The middle class will disappear.
Well, it is funny to see that an economics pretending to think like a psychologist. As the first thing comes to his mind of high rate of saving in China is due to the story of regaining the greatness of this country, and soon the host pointed out that radio of income that sort of thing. I have to admit that the idea of animal spirit is kind of amazing, but it is hard to quantitatise at this moment. Our science is shallow in the respect of understanding ourselves.
Animal spirits is not about printing money and neither is Keynesianism in general. It mostly deals with fiscal stimulus during economic slumps. And austrian economics is so backwards dude, get over that shit...
I really don't understand what most of comments are talking about. Mathematical economics are based on the wrong assumption of having "homo economicus" as players. People are psychological, not rational.
The current economic theory is like trying to make an strategy fora footbal match assuming that all players run at the speed of light. It borders with the irrelevant.
Shiller is trying to make economics useful, not just trying to make it "pretty". He's a pioneer, we need more men like him.
I like his refreshing perspective. You are right, people are psychological, not rational. Social psychology can also be applied to understand the function of cities.
That's the most important point of his approach. Animal spirits, in other words human psyche is far away from the assumption of rational thinking. Behavioral economics are the only way of explaining economics.
Soros contradicts this by saying that buying into a bubble is actually the rational thing to do - which also plays out in reality
It’s surprisingly to see how everyone in the comments assume they could very well take heads on some of the best economists in the world. God you all are such experts aren’t you??
Thanks for sharing. Hope we can have the slides in the future!
He is absolutely enlightened. I'm amazed by his ability to articulate very complicated things so elegantly and laconic.
Terrible problem of my life that sometimes I figure out by myself a lot from what he said. and I know it for days or weeks, after some emotions push me in different state of mind and I don't remember nothing from this understanding pattern. It's feels so wierd, but I also recognize this in my friends, if I explain them some concepts, they understand it completely and seems to be very happy of this knowledge (feel emotions about knowing that emotions drives everything and we lining arround different believes and simulacras), and next day they don't remember that feeling of understanding. Usually on a next day. It's like "common sense" arround us in society against to understand this simple but absolutely essential things.
Understanding of things is also some kind of emotion ("aha" moment 🤔), it's not a simple copy-past into your brain.
Inflated P/E ratios can be representative of heavy inflows of money into stocks such as those during the booming period of the late 90s under which there was in fact an exuberance among most participants. So P/E ratios can in fact and do generally move with the amount of enthusiasm in the market.
Sir, please add slides in the video. To all my friend for honorable comments
Through out the human history shows that fairy tales became the realities, BF is a new field and a lot question need answers in the field. We must give kind / due attention to every research, this might solve our problems that we are facing in the world.
thanks and apology if some one feel it bad
Back in the days 🤣 when LSE uploaded in 360p
Outstanding presentation!
Anyone know where to get the slides that go with this presentation?
Shiller is wonderful. UA-cam comments haters are jeaalous dorks.
Next time please do show the charts that the presenter/speaker is showing.
slides:
www2.lse.ac.uk/fmg/events/publicLectures/2009/animalSpirits.aspx
//google doesn't want me to post normal link
This is an entertaining talk on Animal Spirits.
it is and we are
Excellent
Show the slides.
Central Banks drive asset prices and the stock market
The Ultimate Challenge of Behavioral Economics will be the addressing of generationally passed down mass hysteria-the driver of toxic consumption coupled with a draconian work ethic that are the greatest sources of Pigou’s externalities.
we cannot see the charts.
What do the Great Depression, the Tech boom and bust of the 90's and the Sub Prime housing bust and Great Recession all have in common? Easy Credit and lack of regulation. Simple as that. The bust of 87 was a computer glitch as it was newly introduced to trading. In the next decade Demographics will be a major factor as the last of the baby boomers die off. Yet manufacturing tech will lesson that blow to depopulation in North America. But the massive fall in tax revenue will cause great suffering and lack of opportunity for generations to come as they will be taxed to death. The middle class will disappear.
Nobody predicted the 2008 crash? What about Peter Schiff or Brooksley Born?
>Peter Schiff
lmao
Well, it is funny to see that an economics pretending to think like a psychologist. As the first thing comes to his mind of high rate of saving in China is due to the story of regaining the greatness of this country, and soon the host pointed out that radio of income that sort of thing.
I have to admit that the idea of animal spirit is kind of amazing, but it is hard to quantitatise at this moment. Our science is shallow in the respect of understanding ourselves.
What do you think now
3:19 ---> Bobby!!!
I'm a simple woman
I have my own opinions
I agree with anyone that it's hot
I'm weak
Forced usage of animal spirits शोभा नहीं देता
Animal spirits is not about printing money and neither is Keynesianism in general. It mostly deals with fiscal stimulus during economic slumps. And austrian economics is so backwards dude, get over that shit...
LMFAO We're back to belief in ether.