#ECONOMIX BOOK SUMMARY FULL#

If we want to be ready for the future, we need to understand the narratives of the past.Epidemics and economic narratives have a lot in common.Bitcoin is the perfect example of how stories affect economics.These are the 3 most interesting lessons I got out of this book: By looking at financial markets this way, we can not only better understand the economy but also be prepared for what the future might throw at us. Shiller offers an entirely new way to look at economic change with plenty of historical evidence to back it up. In Narrative Economics: How Stories Go Viral and Drive Major Economic Events by Robert Shiller, we explore how popular stories affect our economy.

#ECONOMIX BOOK SUMMARY FULL#

So to get a full picture of what drives financial markets, one must also look at the surrounding narratives.

The popular stories at the time can change economic outcomes, leading to everything from a craze of novice investors getting into Bitcoin to a spread of panic during a stock-market crash. They are influenced by stories all around them. They have their own beliefs, biases, and passions. And they are more than just a set of statistics. Consumers, politicians, and business people all have a hand in affecting the way the market goes. To them, the economy is on its own numerical plane, separate from the rest of the world.īut here’s the thing- the economy is driven by humans. If you ask most economists about what makes a financial market fluctuate, they’ll probably tell you it’s all just statistics. 1-Sentence-Summary: Narrative Economics explains the influence that popular stories have on the way economies operate, including the rise of Bitcoin, stock market booms and crashes, the nature of epidemics, and more.

Economix book summary