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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