American Consequences - July 2020

UNDERSTAN PANDEMIC STO

By Robert J. Shiller

The performance of stock markets, especially in the United States, during the coronavirus pandemic seems to defy logic.

With cratering demand dragging down investment and employment, what could possibly be keeping share prices afloat? The more economic fundamentals and market outcomes diverge, the deeper the mystery becomes, until one considers possible explanations based on crowd psychology, the virality of ideas, and the dynamics of narrative epidemics. After all, stock market movements

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July 2020

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