Saturday, February 11, 2017

Robert Shiller fleshes out Expectations with Narrative Economics. Meanwhile ...

Robert Shiller:
My goal in this paper is to describe what we know about narratives and the penchant of the human mind to be engaged by them, to consider reasons to expect that narratives might well be thought of as important, largely exogenous shocks to the aggregate economy.
But are narratives more important than this?

The Debt-per-Dollar Ratio, 1916-1970
And this?

The Debt-per-Dollar Ratio since 1970
And this?

Household Debt Service
And this?

Private-to-Public Debt Ratio
Click here for the Excel file
I think not.

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