Summary of Robert J. Shiller's Narrative Economics

By IRB Media

Get the Summary of Robert J. Shiller's Narrative Economics: How Stories Go Viral and Drive Major Economic Events in 20 minutes. Please note: This is a summary & not the original book.Original book introduction:Spread through the public in the form of popular stories, ideas can go viral and move markets - whether it's the belief that tech stocks can only go up, that 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, and increasingly by social media - drive the economy by driving our decisions about how and where to invest, how much to spend and save, and more. But despite the obvious importance of such stories, most economists have paid little attention to them. Narrative Economics sets out to change that by laying the foundation for a way of understanding how stories help propel economic events that have had led to war, mass unemployment, and increased inequality.The stories people tell - about economic confidence or panic, housing booms, the American dream, or Bitcoin - affect economic outcomes. Narrative Economics explains how we can begin to take these stories seriously. It may be Robert Shiller's most important book to date

• Language: English
• Publisher: IRB Media
• Release date: Nov 18, 2021
• ISBN: 9781638157038

IRB Media

With IRB books, you can get the key takeaways and analysis of a book in 15 minutes. We read every chapter, identify the key takeaways and analyze them for your convenience.

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Insights on Robert J. Shiller's Narrative Economics

Contents

Insights from Chapter 1

Insights from Chapter 2

Insights from Chapter 3

Insights from Chapter 4

Insights from Chapter 1

#1

Economic narratives are contagious stories that can change how people make economic decisions, such as whether or not to hire a worker or to wait for better times.

#2

The Bitcoin story is one of excitement, mystery, and jargon. It is a narrative that appeals to many people because it promises easy wealth.

#3

Narrative economics is a branch of economics that attempts to explain human behavior by relating it back to a narrative, or a story.

#4

There is also a growing movement centered around the word hacker, which refers to someone who independently develops and creates technology. For these people, authority is not something to be feared, but instead, something to be opposed.

#5

The Bitcoin story is a motivating narrative for the cosmopolitan class around the world, for people who aspire to join that class, and for those who identify with advanced technology.

#6

The story of Bitcoin is a story of economic empowerment, as the currency is decentralized, anonymous, and free from government control. It is also a story about the fear of computers taking over our lives, as the technology continues to automate tasks leaving humans unemployed.

#7

The digital currency Bitcoin has captured the public’s imagination, and for good reason: it is an exciting and mysterious phenomenon that has captured the hearts of many.

#8

The popularity of Bitcoin cannot be understated, and it stems from the fact that so many people are interested in it. People are drawn to Bitcoin because they believe that other people will be as well.

#9

The discipline of economics has long neglected the importance of narratives.

#10

The word narrative is rarely used in economics to refer to a conventional view that will be criticized. Instead, it is casually tossed around to refer to what the author perceives to be a conventional view.

#11

There are various mathematical models that can be used to forecast the spread of diseases, and many of these models are applicable to the economy.

#12

Historians have always paid close attention to narratives. We