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CFA SINGAPORE INSIGHTS

On bubbles, reflexivity, and narrative economics

Economist Robert J Shiller also talks about why people involved with forecasting have to use every available perspective to stay in touch with reality

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The Great Depression narrative... has become a legend. It's become something that is exaggerated in its importance," says Prof Shiller.

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"We don't want crazy fluctuations in the market. If we can prevent markets from ever falling too far or ever going up too much, that's a good thing," says Prof Shiller.

NOBEL laureate and Yale economics don Robert J Shiller has shown remarkable prescience over the years. In his New York Times best-seller Irrational Exuberance, he successfully called the dot-com bubble. Less than 10 years later, in the run-up to the financial crisis, he issued similarly accurate

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