Robert Shiller, Nobel prize-winning economist and a professor of economics at Yale University, is best known for the Shiller P/E (price/earnings) multiple, which has produced accurate valuations of the US stock market. In recent years it has grown controversial.

FT's John Authers asks him about the limits of Cape (cyclically adjusted price-to-earnings ratio), and about investors' growing fear that stocks are too expensive.

 

Find the CAPE value for a stock

 

As markets brace for the Federal Reserve's decision on whether to raise interest rates for the first time in nine years, John Authers reports from Yale University on how market participants believe a rate rise would hit markets. The greatest fears surround the credit markets.