Robert Shiller Is Smarter Than You Are

The Nobel prize winner says he knows how to insure homeowners and job seekers against risk
Henry Leutwyler/Contour by Getty Images

When Robert Shiller collects his Nobel prize for economics in Stockholm on Dec. 8, he will undoubtedly be described as the guy who doesn’t believe in efficient markets. But the man who warned presciently of bubbles in stocks and housing is a huge believer in financial engineering. “Derivative” is not a dirty word to Shiller. Neither is “hybrid security” nor “negative amortization” (paying less than the interest you owe).

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