Narrative Economics: How Stories Go Viral & Drive Major Economic Events
by Robert J Shiller
In this book Nobel-prize winning economist Robert J Shiller looks at the influence of popular story-telling (narratives) on economic activity and explores how research in this area could improve our understanding of financial crashes and other major economic events.
Our interview with Robert Shiller was on ‘capitalism and human nature‘, with some excellent book recommendations.
Nobel-prize winning author Robert J Shiller looks at how the birth and dissemination of narratives—that is, stories that claim to explain things—can affect economic activity. He argues that narratives exercise a powerful influence on human behaviour and can grow to dominate a population (and, equally, can die out) in much the same way as an epidemic disease. He argues that understanding how narratives can affect economic activity will provide a rich seam of future research for economists. It is area of research whose time has come. Social media provide a new and powerful means of propagating narratives. At the same time modern methods of data generation and collection have opened up new possibilities for the analysis and understanding of these trends.
Our most recommended books
A Monetary History of the United States, 1867-1960
by Anna Schwartz & Milton Friedman
The Big Short: Inside the Doomsday Machine
by Michael Lewis
The Passions and the Interests
by Albert Hirschman
The Wealth and Poverty of Nations
by David S Landes
The Worldly Philosophers
by Robert L Heilbroner
The Wealth of Nations
by Adam Smith
Five Books review