What is Narrative Economics?
The term narrative economics was coined by economist Robert J. Shiller, a Nobel laureate in Economics, to describe how the stories that people tell influence economic outcomes. Shiller’s theory posits that economic behaviour is often driven not just by facts and data, but by the compelling narratives that shape our collective perceptions of markets, businesses, and the world. According to Shiller, stories can spread like “viruses,” influencing decisions and shaping trends at a mass scale.