How Stories Shape The Economy : Planet Money Nobel Laureate Robert Shiller talks about his new book, which looks at how narratives drive economic change and may help economists more accurately forecast recessions.
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How Stories Shape The Economy

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How Stories Shape The Economy

How Stories Shape The Economy

How Stories Shape The Economy

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Simone Golob/Getty Images
Telling stories
Simone Golob/Getty Images

The weather is unpredictable, and so is the economy. Economists are generally accurate in forecasting the economy only six months in advance. Why, in this age of readily available information and analytics, aren't longer-term predictive models more reliable?

In his new book, Narrative Economics: How Stories Go Viral And Drive Major Economic Events, Nobel Laureate Robert Shiller talks about how narratives--stories that inspire emotion in consumers and influence their actions--should play a bigger role in predicting macroeconomic outcomes.

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