Room for disappointments in 2025 and into 2026

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.