Market Volatility presents an innovative theory, supported by significant statistical evidence, on the roots of price fluctuations in speculative markets. It opposes the standard efficient markets model for interpreting asset prices by highlighting the significant role that psychology plays in price volatility. This book constitutes a culmination of Robert Shiller's research on the basic issues admissible to all markets in which prices make movements for speculative reasons and offers comprehensive study of the bond market, stock market, and the real estate market.
Shiller's book should be read by anyone with a serious interest in the functioning of markets.
A specter haunts modern economics: 'individual stocks perform random walks in efficient markets, but the level of the whole market displays no deconstrable efficiency.' Bob Shiller is the key economist in this great debate. Buy his book and think on its contents. Learn what the October 1987 crash was all about.
― Paul Samuelson, Institute Professor, MIT