Professor Shiller address considers the epidemiology of narratives relevant to economic fluctuations. The human brain has always been highly tuned toward narratives, whether factual or not, to justify ongoing actions, even such basic actions as spending and investing. Narratives “go viral” and spread far, even worldwide, with economic impact.
Narrative Economics
Robert Shiller
Research
43 Pages
Key Takeaways
Core idea: Popular stories can spread socially and influence consumption, investment, and broader economic fluctuations.
Historical lens: Shiller applies this framework to episodes like the 1920 to 1921 downturn, the Great Depression, and the Great Recession.
Research gap: Economics has paid limited attention to narratives, despite their potential role as measurable drivers of behavior.
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