Narrative Economics from Coursera

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

What's inside

Syllabus

Introduction

Module 1 introduces basic concepts and demonstrates how popular stories change over time to affect economic outcomes, including recessions, depressions, and other important economic phenomena. These stories can come from diverse sources such as politics, the media, or even popular songs.

Traffic lights

Read about what's good

what should give you pause

and possible dealbreakers

Explores the impact and interplay of narratives in economic decision-making processes, which is highly relevant in today's dynamic economy and media landscape

Taught by Robert Shiller, an esteemed economist recognized for his work on behavioral economics, providing learners with insights from an expert in the field

Presents original ideas and challenges learners to critically evaluate the role of narratives in economic phenomena

Assumes some background knowledge in economics and finance, which may limit accessibility for complete beginners

Primarily theoretical in nature, with limited practical applications or hands-on exercises

May be most suitable for academics, researchers, and experienced professionals in economics, finance, or related fields

Reviews summary

Shiller's novel economic framework

According to students, this course offers a thought-provoking and novel perspective on economics, introducing Robert J. Shiller's groundbreaking concept of narrative economics. Many found the content to be highly engaging and the lectures presented with clarity, making complex ideas accessible. It's lauded as a strong starting point for understanding how societal stories influence economic behavior and is particularly suited for those interested in conceptual frameworks and future research. Some learners, however, noted its primarily theoretical focus and suggested it could benefit from more practical examples or deeper dives into specific applications.

Course length can leave some desiring more depth.

"The course felt a bit too short given the immense potential of the topic; I craved more examples and modules."

"I found the modules to be quite concise, which was good for a quick overview, but left me wanting deeper elaboration."

"It’s a brief introduction, perhaps too brief for such a significant new economic idea."

"Could benefit from expanded content, especially on the 'perennial narratives' section."

Emphasizes conceptual understanding over practical application.

"While fascinating, the course is quite theoretical and less focused on direct, practical applications for financial professionals."

"I wish there were more concrete examples or case studies demonstrating how to *apply* narrative economics in practice."

"This course is excellent for researchers and academics, but those seeking hands-on tools might find it too abstract."

"It's a high-level conceptual course, which is great for sparking ideas, but don't expect a 'how-to' guide."

Serves as a foundational introduction to the subject.

"This course is an excellent introduction to narrative economics, providing a solid foundation for further study."

"It feels like the perfect entry point into a very important and emerging field of economic thought."

"I see this as a springboard for my own research; it's a great initial exploration of the topic."

"The content lays out the basic concepts wonderfully, preparing you for more in-depth exploration if desired."

Instructor Robert Shiller delivers complex ideas accessibly.

"Professor Shiller's lectures were incredibly clear and concise, making what could be a dense topic very digestible."

"His ability to articulate such a complex idea with such simplicity and passion made every module a joy to learn."

"I appreciated the directness and intellectual honesty in Professor Shiller's presentation style."

"The lectures are engaging and truly inspire you to think differently about economics and society."

Presents a unique and timely perspective on economic analysis.

"This course provided me with a completely new lens through which to view economic events and human decision-making."

"Shiller's concept of narrative economics is groundbreaking and offers a vital addition to traditional economic thought."

"I found the idea of economic narratives incredibly insightful, especially in understanding current global trends and historical shifts."

"The course introduces a fresh and compelling framework for analyzing economic behavior beyond mere statistics."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Narrative Economics with these activities:

Review Course Materials from Previous Term or Related Course

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Reviewing previous materials will help strengthen your understanding of economics and related terms used throughout this course.

Browse courses on Artificial Intelligence

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Locate your notes, assignments, and textbooks from previous economics or related courses.
Review course notes and textbooks for key concepts and definitions.
Complete practice problems and review old quizzes and exams to test your understanding.

Read 'Narrative Economics' by Robert Shiller

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This book provides a deep dive into the theories and concepts covered in this course, and will help you better understand the role of narratives in economic decision making.

View Narrative Economics: How Stories Go Viral and... on Amazon

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Purchase or borrow a copy of 'Narrative Economics'.
Read through the book, taking notes on key concepts and examples.
Summarize the main arguments and theories presented in the book.

Explore Online Tutorials on Narrative Economics

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There are numerous online tutorials and resources that can supplement the course material and provide a deeper understanding of narrative economics.

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Search for online tutorials on narrative economics using platforms such as Coursera, edX, or YouTube.
Choose a tutorial that aligns with your interests and learning style.
Follow the tutorial, taking notes and completing any exercises or assignments.

Four other activities

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Analyze Economic News Articles for Narrative Content

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Analyzing economic news articles will help you identify and understand how narratives are used to shape economic beliefs and behaviors.

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Select a reputable economic news source, such as The Economist or The Wall Street Journal.
Read through several recent articles and identify the key narratives being presented.
Analyze the language and framing used in the articles to understand how the narratives are constructed and disseminated.

Write a Blog Post or Article on Narrative Economics

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Writing a blog post or article will help you synthesize and communicate your understanding of narrative economics to a wider audience.

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Choose a specific topic or aspect of narrative economics to focus on.
Research the topic thoroughly, gathering evidence and examples to support your arguments.
Write a well-structured and engaging blog post or article that clearly explains your topic and its implications.

Join a Study Group or Discussion Forum on Narrative Economics

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Engaging with peers will allow you to share your insights, learn from others, and deepen your understanding of the course material.

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Find or create a study group or discussion forum dedicated to narrative economics.
Actively participate in discussions, asking questions and sharing your thoughts on the course topics.

Participate in a Narrative Economics Case Competition or Hackathon

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Participating in a case competition or hackathon will challenge you to apply your knowledge of narrative economics to real-world situations.

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Research and identify upcoming narrative economics case competitions or hackathons.
Form a team or work independently to develop a solution to the challenge presented.

Career center

Learners who complete Narrative Economics will develop knowledge and skills that may be useful to these careers:

Economist

Economists study the production, distribution, and consumption of goods and services. This course may be helpful for Economists who want to understand how narratives influence economic behavior and how this knowledge can help them develop more effective economic policies.

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Financial Analyst

Financial Analysts evaluate the financial performance of companies and make recommendations to clients. This course may be helpful for Financial Analysts who want to understand how narratives influence investor behavior and how this knowledge can help them make more informed financial recommendations.

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Investment Analyst

Investment Analysts evaluate investments and make recommendations to clients. This course may be helpful for Investment Analysts who want to understand how narratives influence investor behavior and how this knowledge can help them make more informed investment decisions.

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Speechwriter

Speechwriters write speeches for public figures. This course may be helpful for Speechwriters who want to understand how narratives can be used to persuade and inspire an audience.

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Management Consultant

Management Consultants advise businesses on how to improve their performance. This course may be helpful for Management Consultants who want to understand how narratives influence consumer behavior and organizational culture, and how this knoweldge can help them develop more effective strategies for their clients.

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Public relations manager

Public Relations Managers manage the public image of organizations. This course may be helpful for Public Relations Managers who want to understand how narratives influence public opinion and how this knowledge can help them develop more effective public relations campaigns.

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Social Media Manager

Social Media Managers create and manage social media content for organizations. This course may be helpful for Social Media Managers who want to understand how narratives can be used to engage and interact with audiences on social media.

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Marketing Manager

Marketing Managers plan and execute marketing campaigns to promote products and services. This course may be helpful for Marketing Managers who want to understand how narratives influence consumer behavior and how to use this knowledge to develop more effective marketing strategies.

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Market Researcher

Market Researchers study consumer behavior and market trends. This course may be helpful for Market Researchers who want to understand how narratives influence consumer behavior and how this knowledge can help them develop more effective market research strategies.

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Journalist

Journalists write, edit, and publish news and information. This course may be helpful for Journalists who want to understand how narratives influence public opinion and how this knowledge can help them produce more informed and impactful reporting.

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Advertising Copywriter

Advertising Copywriters write text for advertisements. This course may be helpful for Advertising Copywriters who want to understand how narratives can be used to persuade consumers to purchase products or services.

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Professor

Professors teach and research at universities and colleges. This course may be helpful for Professors who want to understand how narratives influence student learning and how this knowledge can help them develop more effective teaching methods.

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UX Designer

UX Designers design user interfaces for websites and other digital products. This course may be helpful for UX Designers who want to understand how narratives can be used to create user interfaces that are easy to use and understand.

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Human Resources Manager

Human Resources Managers manage the human resources of an organization. This course may be helpful for Human Resources Managers who want to understand how narratives influence employee behavior and how this knowledge can help them develop more effective human resources strategies.

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Data Analyst

Data Analysts study data using a variety of techniques to extract meaningful insights that can help businesses make informed decisions. This course may be useful for Data Analysts who want to incorporate narrative economics into their research and analysis to improve their understanding of consumer behavior and market trends.

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