In many ways the credit crisis that started in August last year and the subprime fiasco that preceded it, are tailor-made for the interests of Robert Shiller. Not only is he widely regarded as one of the leading experts on housing markets, but he is also a student - and indeed a strong proponent - of financial innovation, including securitisation and the expanded use of derivatives. In this interview, he explains how a third academic interest of his, behavioural economics, can help explain the