Friday 15 February 2013

Irrational Exuberance

The phrase irrational exuberance was first coined by Alan Greenspan to explain how speculative bubbles can emerge through the irrational optimism of investors leading to a divergence in market and fundamental prices.  It is easy to see how the free markets of capitalism may foster such pseudo-growth especially if unchecked by government regulation.  The following video provides a short introduction to the concept.


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