In the video bellow, economist Robert Shiller discusses four aspects of the current crisis: regulating for financial innovation, reducing trust in models, redesigning institutions, and the time line for turnaround. His perspectives are informed in part through his research that psychology can play a key role in explaining economic breakdowns and exploring solutions.
Robert Shiller is a professor of economics at Yale University and cocreator of the Case–Shiller House Price Index, which is now one of the most widely used methods of measuring performance in that industry. He also introduced into intellectual circulation the phrase “irrational exuberance,” which was picked up famously by Alan Greenspan in 1996. Shiller’s body of work on financial markets and economics includes the books “Irrational Exuberance” and, most recently, “Animal Spirits”.
The interview was conducted by Rik Kirkland, McKinsey’s director of publishing, in March 2009. It was taped at Yale University.
To see the video, please click bellow:
Interview with Robert Shiller