Robert Shiller on Narrative Economics

Cicero's "On Oratory" is a comprehensive treatise on the art of rhetoric, offering insights into the principles of effective public speaking. The work explores various aspects of oratory, including invention, arrangement, style, memory, and delivery. Cicero emphasizes the importance of understanding the audience and adapting one's speech to their needs and expectations. He also highlights the role of ethics and moral responsibility in public speaking. The book remains a valuable resource for students and practitioners of rhetoric, offering timeless wisdom on the power of persuasive communication.

Published in February 1936, 'The General Theory of Employment, Interest and Money' by John Maynard Keynes revolutionized economic thought by challenging the classical economic theories of his time. Keynes argued that total spending in an economy can fail to generate full employment if total savings exceed total investment. He introduced key concepts such as the 'Principle of Effective Demand,' liquidity preference, and the marginal efficiency of capital. The book emphasizes the importance of aggregate demand, the role of government in stabilizing the economy, and the interaction between monetary and real economic factors. Keynes's theories have had a profound impact on economic policy and continue to influence macroeconomic thought and policy to this day.

Published in 1759, 'The Theory of Moral Sentiments' is Adam Smith's first major published work, based on his lectures at Glasgow University. The book argues that morality is driven by humanity's natural sociability and the need for approval from peers, rather than by rational calculation or innate moral sense. Smith introduces key concepts such as sympathy, the impartial spectator, and the invisible hand, which explain how individuals judge the conduct and character of themselves and others. The work delves into the emotional and social aspects of human behavior, highlighting the role of emotions like pity and compassion in shaping moral sentiments and behaviors.

Carl Mengers "Grundsätze der Volkswirtschaftslehre" markieren den Beginn der Österreichischen Schule der Nationalökonomie. Menger entwickelte eine subjektive Wertlehre, die den Wert von Gütern von der individuellen Nachfrage ableitet, im Gegensatz zu den klassischen Theorien, die den Wert auf die Produktionskosten stützten. Das Buch legte die Grundlage für die Weiterentwicklung der Österreichischen Schule durch Ökonomen wie Böhm-Bawerk und Mises. Mengers Werk ist ein Meilenstein in der Geschichte der Wirtschaftswissenschaften und beeinflusst bis heute die wirtschaftspolitische Debatte. Seine Analyse der Entstehung von Märkten und Preisen ist von bleibender Bedeutung.

This book surveys the history of humankind from the Stone Age to the 21st century, focusing on Homo sapiens. It divides human history into four major parts: the Cognitive Revolution, the Agricultural Revolution, the Unification of Humankind, and the Scientific Revolution. Harari argues that Homo sapiens dominate the world due to their unique ability to cooperate in large numbers through beliefs in imagined realities such as gods, nations, money, and human rights. The book also examines the impact of human activities on the global ecosystem and speculates on the future of humanity, including the potential for genetic engineering and non-organic life.

The Iliad is an epic poem attributed to Homer, set during the Trojan War. It begins in the ninth year of the war, where a quarrel between King Agamemnon and the warrior Achilles sets off a chain of events. The poem explores themes of heroism, honor, and fate as it describes the battles and interactions between Greek warriors like Achilles, Diomedes, and Odysseus, and Trojan warriors like Hector and Paris. The story is interspersed with divine interventions from Greek gods and goddesses, influencing the outcome of the war. The poem culminates with Achilles' reconciliation with Agamemnon and his subsequent rage against the Trojans, leading to the death of Hector and the eventual funeral rites for Patroclus and Hector.

Written in epistolary form, the novel tells the story of Victor Frankenstein, a brilliant and ambitious scientist who, driven by Enlightenment-era ideas of progress and science, creates a living being from dead body parts. However, upon seeing the creature come to life, Frankenstein is horrified and abandons it. The creature, shunned by society due to its appearance, seeks revenge against its creator, leading to a series of tragic events. The novel explores themes of guilt, loss, and the emotional and moral consequences of scientific hubris, blending elements of Gothic and Romantic literature.

In this book, Robert J. Shiller argues that economic events are significantly driven by contagious narratives or stories that spread among the public. He contends that these narratives, whether true or false, can go viral and impact economic decisions, such as investments, spending, and saving. Shiller uses historical examples, including stock market crashes, the rise and fall of Bitcoin, and the Great Depression, to illustrate how these narratives shape economic outcomes. He advocates for incorporating the study of these narratives into economic analysis to better predict and mitigate financial crises and other major economic events.

The Economists' Hour chronicles the historic ascent of economists in influence, particularly from the late 1960s onwards. The book details how economists, such as those from the Chicago School, including Milton Friedman, Arthur Laffer, and others, gained significant power in shaping economic policies. It explores their beliefs in free markets and deregulation, and how these policies affected economic equality, liberal democracy, and future generations. The book also critiques the failures of these economic policies, including their role in the 2008 financial crisis and the subsequent erosion of public trust in economists. Appelbaum argues that the single-minded embrace of market principles has come at the expense of broader societal well-being.

In this seminal work, Freud introduces his theory of the unconscious with respect to dream interpretation and discusses what would later become the theory of the Oedipus complex. He argues that dreams are forms of 'wish fulfillment' and are influenced by unconscious forces and censorship. The book differentiates between the manifest content and latent content of dreams and explores the mechanisms of dream formation, including displacement and the 'dream-work'. Freud uses his own dreams and those of his patients to illustrate his theories, providing a deeply personal and insightful look into the human psyche.