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Today's episode of 'Ask the Nobel Laureate': What is a 'bubble'?
Today's episode of 'Ask the Nobel Laureate': What is a 'bubble'?

Is Silicon Valley in a "bubble"? When you start asking that question of people, the first reply you inevitably get is: Well, what do you mean by 'bubble'? To which I reply: Well, um, er... After fumbling around for an answer, I decided to call up someone who might actually know what he was talking about. And that led me to Robert Shiller, the Yale University economist who won a Nobel Prize last year for his work on economic bubbles.  In a phone conversation, I asked Shiller to define a "bubble," and he responded by citing the definition of a "speculative bubble" from his book "Irrational Exuberance": "A situation in...

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