Summary of Narrative Economics

Looking for the report?
We have the summary! Get the key insights in just 5 minutes.

Narrative Economics summary
Start getting smarter:
or see our plans

Rating

9 Overall

8 Importance

10 Innovation

8 Style


Recommendation

The field of economics lags considerably behind other social sciences, such as history, anthropology and sociology, in understanding the ways narratives affect human thoughts and actions. Noted economist Robert J. Shiller explains the large-scale ramifications and detailed nuances of “narrative economics,” and how stories about an economic event – perhaps tales of the Great Depression or accounts of asset bubbles – may contribute to financial disruption. getAbstract recommends his erudite report to economists and historians interested in a sweeping discussion of the arc of narrative and its impact on economies. 

In this summary, you will learn

  • What the term “narrative economics” describes,
  • How economists can use stories in their profession, and
  • Why narratives are important for understanding economic conditions and policies.
 

About the Author

Nobel laureate Robert J. Shiller is a professor of economics and finance at Yale University.

 

Summary

Financial events can fuel stories that often transcend the economic facts. The explanation people create or latch onto to help them make sense of their environment can “go viral” if the story “maintains a core contagious element.” The discipline of “narrative economics” provides an approach by which economists can understand how these accounts begin, evolve and live on, while offering a quantitative resource for determining how these tales affect actual economic conditions and influence policy making.


More on this topic

By the same author

Crash Beliefs from Investor Surveys
Crash Beliefs from Investor Surveys
8
Phishing for Phools
Phishing for Phools
8
Finance and the Good Society
Finance and the Good Society
7
Reforming U.S. Financial Markets
Reforming U.S. Financial Markets
7
Animal Spirits
Animal Spirits
9
The Subprime Solution
The Subprime Solution
9
The New Financial Order
The New Financial Order
10
Irrational Exuberance
Irrational Exuberance
9

Customers who read this summary also read

Stabilizing an Unstable Economy
Stabilizing an Unstable Economy
8
People Get Ready
People Get Ready
8
The American Economy Is Rigged
The American Economy Is Rigged
8
Grave New World
Grave New World
8
Narrative and Numbers
Narrative and Numbers
8
The Global Risks Report 2018
The Global Risks Report 2018
9

Related Channels

Comment on this summary