The feedback loop between financial markets and bubbles is fiendishly difficult to unravel, which is perhaps one of the reasons why the bookshelf of financial bubble literature gets heavier every year. Here are a few of the most influential and interesting ones:
- Irrational Exuberance is Yale professor Robert Shiller’s seminal book on financial bubbles. The Nobel prize winner’s other books include Narrative Economics: How Stories Go Viral and Drive Major Economic Events.
- Richard Thaler is a titan of behavioral economics. Consider the Nobel prize winner’s book Nudge: Improving Decisions about Health, Wealth, and Happiness, and Misbehaving: The Making of Behavioral Economics.
- John Coates, a Wall Street trader turned neuroscientist, considers the molecule of “irrational exuberance” in The Hour Between Dog and Wolf.
- Professors Willian Quinn and John Turner take a tour through centuries of panics in Boom and Bust: A Global History of Financial Bubbles.
