The Indicator from Planet Money Can a good story change economic reality?
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Jan 14, 2026 
Darun Asamoglu, a Nobel Prize-winning economist from MIT, dives into the captivating world of narrative economics. He explains how compelling stories can shape economic behavior, using the Suez Canal as a prime example. Asamoglu discusses the role of high-status individuals in amplifying narratives and how this influence can sway investment decisions. The conversation also highlights the pitfalls of relying on narratives, as seen in the contrasting outcomes of Suez and Panama, urging us to critically evaluate the stories that drive our economic choices.
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Narratives Are Economic Data
- Robert Shiller reframed narratives as economic data that shape decisions beyond hard numbers.
- Narratives influence spending, saving, and investment by altering beliefs and expectations.
Status Amplifies Stories
- Darun Asamoglu explains that high-status endorsers amplify ideas and make narratives stick.
- Status-driven repetition helps narratives shape culture, institutions, and coalitions over time.
Selling Suez: A Story Ahead Of Tech
- Ferdinand de Lesseps sold the Suez Canal as a transformative project and raised funds by telling tailored stories.
- His narrative outpaced technical certainty but succeeded thanks to some lucky technological and political developments.