IfW in the News

How banking model narratives affect NPAs


George Akerlof und Dennis Snower analyze in their paper the importance of economic narratives.

Excerpt from the Article

(...) The importance of "narrative" in policy and economic decision-making cannot be overstated. Narratives sometimes overtake economic rationale. George Akerlof and Dennis J. Snower, in a paper titled Bread And Bullets, focus on this element. Narratives tend to be simplified accounts of events. This facilitates easy and intuitive understanding of an otherwise complex process or event. However, that certain narratives become popular does not mean that they are providing accurate or comprehensive explanations.

Complete article

Journal Article

Bread and Bullets

Journal of Economic Behavior and Organization
George A. Akerlof, Dennis J. Snower

Standard economics omits the role of narratives (the stories that people tell themselves and others) when they make all kinds of...


George A. Akerlof