Investment Perspectives Second Quarter 2009 Print E-mail

“The idea that economic crisis, like the current financial and housing crisis are mainly caused by changing thought patterns (italics added) goes against standard economic thinking” says Robert Shiller in his new book, Animal Spirits. He believes that “human psychology is a driver of the U.S. economy” in contrast to the traditional macroeconomic notion that consumers and investors are rationale decision makers.

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