Daniel Peris on Robert Shiller’s “Narrative Economics” (Princeton UP, 2019)

Culture matters. And a key element of culture is storytelling. These maxims can be accepted as given, except in modern economics, where the mechanistic framework of modern macroeconomic analysis allows just for formulas. Concerned about the relationship between unemployment levels and inflation? Here’s the formula: gW = gWT – f(U − U*) + λ·gPex It’s called the Phillips...