irrational exuberance

USAGE SUMMARY

The phrase "irrational exuberance" is correct and usable in written English.
It is typically used to describe a situation where investors are overly enthusiastic about the market, leading to inflated asset prices. Example: "The stock market experienced a period of irrational exuberance, resulting in a bubble that eventually burst."

✓ Grammatically correct

News & Media

Academia

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

58 human-written examples

INSIDE TRACK: Irrational exuberance.

The New York Times

This is hardly irrational exuberance.

Harvard University

In danger of irrational exuberance?

The Guardian - Business

Irrational exuberance is wrong but not criminal.

The New Yorker

India shows dangerous signs of irrational exuberance.

The Economist

It is more prevalent than irrational exuberance.

The New York Times

"Irrational Exuberance," works by Geoffrey Stein.

The New York Times

In other words, beware irrational exuberance.

The New York Times

The sky-high prices suggest irrational exuberance.

The New York Times - Tech

Human-verified similar examples from authoritative sources

Similar Expressions

2 human-written examples

14 1 *IRRATIONAL EXUBERANCE, by Robert J. Shiller.

The New York Times - Books

Shiller, Robert J. Irrational Exuberance, 2nd edition.

Yale University

Expert writing Tips

Best practice

When discussing financial markets, use "irrational exuberance" to critically assess periods of rapid asset price inflation that seem disconnected from underlying economic fundamentals. It implies a cautionary perspective.

Common error

Avoid applying "irrational exuberance" to general positive sentiment or enthusiasm. Reserve it for situations where there's a clear disconnect between market valuations and economic realities, indicating a potential bubble.

Linguistic Context

The phrase "irrational exuberance" functions as a noun phrase, often acting as a subject or object in a sentence. It typically describes a market condition characterized by unsustainable investor optimism. Ludwig's examples show it being used to identify periods of economic bubble formation.

Expression frequency: Very common

Frequent in

News & Media

63%

Academia

17%

Formal & Business

20%

Less common in

Science

0%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

In summary, "irrational exuberance" is a commonly used noun phrase, primarily within News & Media and Academic contexts, to describe market conditions driven by unsustainable optimism. Ludwig AI confirms its grammatical correctness. It serves as a critical assessment, cautioning against market bubbles. When using the phrase, remember that it should be used in situations where there's a clear disconnect between market valuations and economic realities, indicating a potential bubble and avoid using it loosely to generally describe enthusiastic optimism. Consider alternatives like "unjustified optimism" or "excessive optimism" for nuanced expression.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

irrational optimism

Focuses on the lack of rationality in the positive outlook.

irrational belief

Focuses on belief being irrational.

unjustified optimism

Focuses on the lack of a rational basis for the positive outlook.

excessive optimism

Highlights the extreme degree of positive expectation.

unfounded enthusiasm

Emphasizes that the excitement lacks a solid foundation.

inflated expectations

Focuses on expectations being higher than what is realistic.

market frenzy

Specifically refers to a state of wild excitement in the financial market.

speculative mania

Links the exuberance directly to speculative investment activities.

bubble mentality

Suggests a mindset that contributes to economic bubbles.

wild speculation

Highlights the recklessness of speculative investment activities.

FAQs

How can I effectively use "irrational exuberance" in a sentence?

Use "irrational exuberance" to describe situations where market enthusiasm seems detached from real economic value, like: "The dot-com boom was fueled by "irrational exuberance" leading to a market crash."

What are some alternative phrases I can use instead of "irrational exuberance"?

Consider alternatives like "unjustified optimism", "excessive optimism", or "unfounded enthusiasm" depending on the specific nuance you want to convey.

Is it appropriate to use "irrational exuberance" in formal writing?

Yes, "irrational exuberance" is suitable for formal writing, especially in economic or financial contexts. It's a well-recognized term often used by economists and financial analysts.

What's the origin of the phrase "irrational exuberance"?

The phrase "irrational exuberance" was popularized by Alan Greenspan, former chairman of the Federal Reserve, in 1996, when he used it to describe the stock market boom at the time.