Book Summary

In ‘Narrative Economics’, Robert J. Shiller, a Nobel Prize-winning economist, explores how viral stories or narratives influence economic events and shape financial markets. Shiller argues that these narratives, spreading through word of mouth, news, and social media, significantly impact economic decisions and can fuel speculative bubbles, economic crises, and other major economic phenomena. He emphasizes the need to understand and analyze these stories to better predict and manage economic outcomes. The book combines insights from economics, psychology, and history to illustrate how narratives have driven economic events throughout history and continue to do so today.