Daily Archives: Sep 28, 2019 at 08:28 am EDT

Book Bits | 28 September 2019

Narrative Economics: How Stories Go Viral and Drive Major Economic Events
By Robert J. Shiller
Review via MarketWatch.com
Sometimes investors remain upbeat in the face of no shortage of what economists would otherwise consider to be terrible news. At other times they get spooked by what otherwise appears to be a mere hiccup.
This inherent difficulty of economic forecasting is a theme that has been the focus of recent research by Yale University finance professor (and Nobel laureate) Robert Shiller. In his recently-published book “Narrative Economics: How Stories Go Viral and Drive Major Economic Events,” Shiller contends that “If enough people begin to act fearfully, their anxiety can become self-fulfilling, and a recession, sometimes a big one, may follow.”
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