The UK seems to be experiencing a housing bubble, according to economics Nobel Prize-winner Robert Shiller, who blamed “easy credit” for the surge in UK house prices.
Speaking on the BBC’s Newsnight programme, Shiller, a liberal Yale economist famous for warning of the US sub-prime housing bubble in 2005, said: “It looks somewhat like a bubble, prices are rising pretty fast.
“Whenever you have easy credit, that helps promote a bubble.”
He added that the bubble would not be as bad as the surge before the financial crisis as people have learned lessons from the downturn.
The Royal Swedish Academy of Sciences awarded the coveted Nobel Prize in economics to Yale’s Shiller and Eugene Fama and Lars Peter Hansen of the ultra-conservative Chicago school, for the three academics’ work in trying to show how financial markets operate.
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