Review of Akerlof, George A and Shiller, Robert J.: Animal Spirits: How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism
Integrating insights from psychology, sociology, and other social sciences is crucial for developing more accurate economic theories. Effective economic policy requires not just good ideas, but compelling narratives that instill confidence and shape expectations. Narrative economics. People tend to think in nominal rather than real (inflation-adjusted) terms, leading to systematic errors in economic decision-making. This […]