‘Irrational Exuberance’: Behavioural Finance and Émile Zola’s L’Argent

Abstract

Abstract Émile Zola’s L’Argent has been relatively neglected by critical studies. This interdisciplinary study adds to earlier approaches by examining the ways in which Zola’s novel anticipates strands of contemporary behavioural finance, notably in its analysis of the psychological and social conditions behind ‘irrational exuberance’ and a speculative stock-market bubble. A few avenues are explored, inspired by Robert Shiller’s Irrational Exuberance: precipitating factors, amplification mechanisms, news media, individual investor psychology, herding. The novel reflects contemporary thinking from behavioural finance, but goes further, in its greater human depth, its humour and complexity. Moreover, the novel displays, beyond behavioural finance, a conjunction of financial exuberance with bodily, philosophical, and artistic jouissance, further anticipating modern times.