Fama, Shiller and bubbles everywhere?

English: Macro photograph of coca-cola bubbles...

This week saw a great Planet Money podcast on this year’s Nobel prizes in Economics, delving into the rivalry between Fama and Shiller, and describing how they symbolize the key question in economics – whether it’s closer to Physics or whether it’s closer to Anthropology.

It is wonderful to hear Shiller agreeing to Fama’s challenge that he would agree that Shiller is right if he predicts 10 bubbles in a row. Poor Shiller has to point out that no one lives long enough to witness 10. To help Shiller win this bet, I’m starting a new page to keep a tab on current bubbles – BubbleWatch.

Photo credit: Wikipedia

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