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Narrative Economics
  • Level Foundation
  • Duration 6 hours
  • Course by Yale University
  • Offered by

About

Dear Potential Learner, Please take some time to read through this note before deciding to enroll. This course, Narrative Economics, is relatively short and proposes a simple concept: we need to incorporate the contagion of narratives into our economic theory. You can think of narratives as stories that shape public beliefs, which in turn influence our decision making. Understanding how people arrived at certain decisions in the past can aid our understanding of the economy today and improve our forecasts of the future. Popular thinking heavily influences our answers to questions such as how much to invest, how much to spend or save, whether to go to college or take a certain job, and many more. Narrative economics is the study of the viral spread of popular narratives that affect economic behavior. I believe incorporating these ideas into our research must be done both to improve our ability to anticipate and prepare for economic events and help us structure economic institutions and policy. Until we better incorporate it into our methods of analysis and forecasting, we remain blind to a very real, very palpable, very important mechanism for economic change. Even in the dawning age of the Internet and artificial intelligence, so long as people remain ultimately in control, human narratives will matter. Maybe they will especially matter as the new technology exploits human weaknesses and creates new venues for narrative contagion. If we do not understand the epidemics of popular narratives, we cannot fully understand changes in the economy and in economic behavior. The course is broken into 4 modules: Part I introduces basic concepts and demonstrates how popular stories change over time to affect economic outcomes, including recessions, depressions and inequality as well as effective inspiration and growth.. These stories can be observed from diverse sources such as politics, the media, or even popular songs. Part II seeks to answer why some stories go viral, while others are quickly forgotten, by defining our narrative theory more firmly. This module enumerates and explores a list of seven propositions to help discipline any analysis of economic narratives. Part III examines nine perennial narratives that have proved their ability to influence important economic decisions. They include narratives regarding artificial intelligence, stock market bubbles, and job insecurity. Part IV looks to the future and highlights the opportunities for consilience in Narrative Economics. We share some thoughts about where narratives are taking us at this point in history and what kind of future research could improve our understanding of them. This course offers only the beginnings of a new idea and a few suggestions for how it could be used by economists and financial professionals. The tone is not prescriptive or authoritative, as perhaps my Coursera course, Financial Markets, is in places. It represents the beginning of the journey (epidemic). This course is my way of floating the “germ” of this idea out into the broader community of not only professionals but of anyone who is interested in discovering how and why things become “important” to us as a society. I hope some of you will become infected by this idea, mutate it, spread it, and advance it. The beginning of the journey is the easy part. The challenge will come in taking these concepts to the next level. We have the tools to incorporate narratives into our research and the moral obligation to act; only the work remains. - Robert J. Shiller

Modules

Fundamentals of Narrative Economics

    • 9 Videos
    • 2 Readings
    • 1 Assignment
Show info about module content

1 Assignment

  • Introduction to Narrative Economics

9 Videos

  • Course Introduction
  • The SIR Model
  • Epidemic Curves
  • Where is the Narrative Data?
  • Intro to Ngram
  • Law School
  • Fluctuations in Indicators
  • Prof. Shiller's Narrative
  • Inspirations

2 Readings

  • A Personal Note From Robert Shiller
  • Works Referenced in Module 1

The Seven Propositions

    • 8 Videos
    • 1 Readings
    • 1 Assignment
Show info about module content

1 Assignment

  • The Seven Propositions

8 Videos

  • Introduction to Propositions
  • Proposition 1: Epidemics Can Be Fast or Slow, Big or Small
  • Proposition 2: Important Economic Narratives May Comprise a Very Small Percentage of Popu lar Talk
  • Proposition 3: Narrative Constellations Have More Impact Than Any One Narrative
  • Proposition 4: The Economic Impact of Narratives May Change Through Time
  • Proposition 5: Truth Is Not Enough to Stop False Narratives
  • Proposition 6: Contagion of Economic Narratives Builds on Opportunities for Repetition
  • Proposition 7: Narratives Thrive on Attachment: Human Interest, Identity, and Patriotism

1 Readings

  • Works Referenced in Module 2

Perennial Economic Narratives

    • 10 Videos
    • 1 Readings
    • 1 Assignment
Show info about module content

1 Assignment

  • Perennial Narratives

10 Videos

  • Introduction to Perennial Narratives
  • Labor-Saving Machines Replace Many Jobs
  • Automation and Artificial Intelligence Replace Almost All Jobs
  • Frugality versus Conspicuous Consumption
  • Panic versus Confidence
  • The Gold Standard versus Bimetallism
  • Real Estate Booms and Busts
  • Stock Market Bubbles
  • Boycotts, Profiteers, and Evil Business
  • The Wage-Price Spiral and Evil Labor Unions

1 Readings

  • Works Referenced in Module 3

Who can teach us?

    • 5 Videos
    • 1 Readings
    • 1 Assignment
Show info about module content

1 Assignment

  • Consilience

5 Videos

  • Introduction to Consilience
  • Education
  • Leadership
  • Doing the Research
  • Your Own Narrative

1 Readings

  • Works Referenced in Module 4

Auto Summary

**Narrative Economics: A Revolutionary Approach to Understanding Economic Behavior** **Domain:** Business & Management **Instructor:** Robert J. Shiller Unlock the power of storytelling in economics with the "Narrative Economics" course. This innovative course, led by the esteemed economist Robert J. Shiller, delves into how the viral spread of popular narratives influences economic behaviors and outcomes. **Course Highlights:** - **Focus:** Explore how stories and public beliefs shape economic decisions, from investment and spending to education and career choices. - **Content Overview:** - **Part I:** Introduction to basic concepts, examining how stories impact economic phenomena like recessions and growth. - **Part II:** Analysis of why some stories become viral, introducing seven key propositions for studying economic narratives. - **Part III:** Study of nine influential perennial narratives, including those about artificial intelligence and job insecurity. - **Part IV:** Forward-looking insights on future research directions and the role of narratives in shaping economic trends. **Duration:** 360 minutes (6 hours) **Subscription Options:** Starter, Professional **Course Level:** Foundation **Target Audience:** This course is designed for economists, financial professionals, and anyone intrigued by the interplay between popular narratives and economic behavior. Whether you're a beginner or have some experience in the field, this course offers valuable insights and a fresh perspective on economic analysis. Embark on this enlightening journey to understand the significant role of narratives in economics and enhance your ability to anticipate and prepare for economic changes. Join us and be part of a pioneering effort to integrate narrative economics into mainstream economic theory and practice.

Robert Shiller
Instructor

Robert Shiller