Economic narratives: How fake news and viral stories affect the economy It is a different book about how economy and society are intertwined because it adds a new factor that is often not taken into account in this relationship: contagious folk stories that spread through word of mouth, the media or social networks.
Its author is Robert J. Shiller, 2013 Nobel Prize in Economics.
Storytelling
Popular sentiment very frequently fuels new decisions that, ultimately, in turn affect theThe decisions of economic agents, like a fish that bites the thing: how and where to invest, how much to spend and save, study at university or enter directly into the job market and a long etcetera.
Economic narratives: How fake news and viral stories affect the economy (No collection)
The analysis of the narratives that underlie the economy, then, understood as the study of the viral spread of beliefs and stories that affect people's behavior and their economic decisions, can improve our ability to anticipate and manage future economic events.
Because, although the economy is like meteorology, a non-linear dynamic system, by understanding how stories work and how our brain is influenced by them, we will at least be able to penetrate a deeper layer, honing not only our ability predicting the economic future, but also better understanding the past.
Since before the idea of “virality” existed, the stories people told each other about their experiences or rumors they heard have transformed markets and the economy. Many times, panics, real estate bubbles, stock prices or the future of new phenomena like bitcoin have depended on what one person told another: they are "economic narratives."
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The news
Books that inspire us: 'Economic Narratives' by Robert J. Shiller
was originally published in
Xataka Science
by
Sergio Parra
.