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Nobel Prize-winning economist Robert Shiller and his new book.

Popular stories that go viral aren’t always frivolous. Some can move markets and drive decisions about how and when to invest. In an interview with ThinkAdvisor, a sister publication to Treasury & Risk, Yale economics professor and Nobel Prize winner Robert Shiller argues for economists to pay more attention to what he terms “narrative economics.” As social media has expanded the volume and contagion of popular narratives, some have grown into full epidemics that “can change the economy’s direction,” Shiller maintains.

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