Shiller on Fama: “maybe he has a cognitive dissonance”

Here, emphasis mine:

It must affect your thinking somehow that they really believe in markets. I think that maybe he has a cognitive dissonance. His research shows that markets are not efficient. So what do you do if you are living in the University of Chicago? It’s like being a Catholic priest and then discovering that God doesn’t exist or something, you can’t deal with that, you’ve got to somehow rationalize it.

Cross-posted at Asymptosis.