For those that may not know, Robert Shiller, he’s a Yale Professor, housing economist, author, and a Noble Prize winner.
I just finished reading his New York Times bestselling book, entitled Narrative Economics, an account of how stories help drive economic events―and why financial panics can spread like epidemic viruses.
In his book, Robert Shiller offers a new way to think about the housing economy and overall economic changes. Using a rich array of historical examples and data, Shiller argues that studying popular stories affect individual and collective economic behavior―what he calls “Narrative Economics”― has the potential to vastly improve our ability to predict, prepare for, and lessen the damage of financial crises, recessions, depressions, and other major crisis.
The spread of popular stories, ideas can go viral and can move the Boston real estate market―whether stories about housing prices never fall, or that some firms are too big to fail. Whether true or false, stories like these―transmitted by word of mouth, by the news media, or even real estate blogs―drive the economy by driving our decisions about how and where to invest, how much to spend and save, and more.
Narrative Economics outlays the foundation for a way of understanding how stories help propel economic events, that have had led to panics and mass unemployment This book was written before COVID-19, but you wouldn’t think so.
Once upon a time, I competed with Boston real estate listings. Today, the stories I tell – or fail to tell, determine my destiny.