I’m wondering why Robert Shiller gets to write things like this (and presumably get paid for it):
We expect our political leaders to manage the level of economic activity by employing fiscal and monetary tools … to avoid recessions. However, in the aftermath of the bursting of the largest bubble in history,… we see that a social-psychological phenomenon, over-confidence, was not managed by leaders, and its subsequent collapse represents the deepest cause of the financial crisis.
Always remember, when people start talking about squishy things like “confidence” and “animal spirits“, what they really mean is, “I have no idea”.
P.S. If he really simply means the financial crisis, why did he preface the piece with a reference to the broad macro-economy?