Why Those Guys Won the Economics Nobels
Harvard Business Review
APRIL 2, 2014
Shiller hammered away on this point in the ‘80s, and in fact Fama also published some of the same observations. As we think about the stability of the financial system, large swings in asset prices and big changes in risk premia can be very important, and relatively hard to arbitrage away. They tend to be followed by declining prices.
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