How Novelty and Narratives Drive the Stock Market


Book Description

"When unscheduled events hit the stock market, from corporate scandals and technological breakthroughs to recessions and pandemics, relationships driving returns change in unforeseeable ways. To deal with uncertainty, investors engage in narratives thatwhich simplify the complexity of real-time, non-routine change. Narratives themselves are a source of uncertainty as investors tell stories that others have told them and so on. This book assesses the Novelty-Narrative Hypothesis for the U.S. stock market by conducting a comprehensive investigation of unscheduled events through big data textual news analysis of Dow Jones and Bloomberg News financial reports. Analysis is motivated by great early thinkers of modern-day capital markets, such as Knight, Keynes, and Popper, and recent evidence from outside disciplines, such as cognitive psychology, sociology, and linguistics. Findings suggests that major macro events and associated narratives spill over into the churning stream of corporate novelty and sub-narratives, spawning different forms of unforeseeable stock market instability"--




How Novelty and Narratives Drive the Stock Market


Book Description

'Animal spirits' is a term that describes the instincts and emotions driving human behaviour in economic settings. In recent years, this concept has been discussed in relation to the emerging field of narrative economics. When unscheduled events hit the stock market, from corporate scandals and technological breakthroughs to recessions and pandemics, relationships driving returns change in unforeseeable ways. To deal with uncertainty, investors engage in narratives which simplify the complexity of real-time, non-routine change. This book assesses the novelty-narrative hypothesis for the U.S. stock market by conducting a comprehensive investigation of unscheduled events using big data textual analysis of financial news. This important contribution to the field of narrative economics finds that major macro events and associated narratives spill over into the churning stream of corporate novelty and sub-narratives, spawning different forms of unforeseeable stock market instability.




Imperfect Knowledge Economics


Book Description

Posing a major challenge to economic orthodoxy, Imperfect Knowledge Economics asserts that exact models of purposeful human behavior are beyond the reach of economic analysis. Roman Frydman and Michael Goldberg argue that the longstanding empirical failures of conventional economic models stem from their futile efforts to make exact predictions about the consequences of rational, self-interested behavior. Such predictions, based on mechanistic models of human behavior, disregard the importance of individual creativity and unforeseeable sociopolitical change. Scientific though these explanations may appear, they usually fail to predict how markets behave. And, the authors contend, recent behavioral models of the market are no less mechanistic than their conventional counterparts: they aim to generate exact predictions of "irrational" human behavior. Frydman and Goldberg offer a long-overdue response to the shortcomings of conventional economic models. Drawing attention to the inherent limits of economists' knowledge, they introduce a new approach to economic analysis: Imperfect Knowledge Economics (IKE). IKE rejects exact quantitative predictions of individual decisions and market outcomes in favor of mathematical models that generate only qualitative predictions of economic change. Using the foreign exchange market as a testing ground for IKE, this book sheds new light on exchange-rate and risk-premium movements, which have confounded conventional models for decades. Offering a fresh way to think about markets and representing a potential turning point in economics, Imperfect Knowledge Economics will be essential reading for economists, policymakers, and professional investors.




Narrative Economics


Book Description

From Nobel Prize–winning economist and New York Times bestselling author Robert Shiller, a groundbreaking account of how stories help drive economic events—and why financial panics can spread like epidemic viruses Stories people tell—about financial confidence or panic, housing booms, or Bitcoin—can go viral and powerfully affect economies, but such narratives have traditionally been ignored in economics and finance because they seem anecdotal and unscientific. In this groundbreaking book, Robert Shiller explains why we ignore these stories at our peril—and how we can begin to take them seriously. Using a rich array of examples and data, Shiller argues that studying popular stories that influence individual and collective economic behavior—what he calls "narrative economics"—may vastly improve our ability to predict, prepare for, and lessen the damage of financial crises and other major economic events. The result is nothing less than a new way to think about the economy, economic change, and economics. In a new preface, Shiller reflects on some of the challenges facing narrative economics, discusses the connection between disease epidemics and economic epidemics, and suggests why epidemiology may hold lessons for fighting economic contagions.




The Origins of English Financial Markets


Book Description

The late seventeenth century was a crucial period in English financial history. A host of joint-stock companies emerged offering the opportunity for investment in projects ranging from the manufacture of paper to the search for sunken treasure. Driven by the demands of the Nine Years' War, the state also employed innovative tactics to attract money, its most famous scheme being the incorporation of the Bank of England. This book provides a comprehensive study of the choices and actions of the investors who enthusiastically embraced London's new financial market. It highlights the interactions between public and private finance, looks at how information circulated around the market and was used by speculators and investors, and documents the establishment of the institutions - the Bank of England, the national debt and an active secondary market in that debt - on which England's financial system was built.




Stories that Shape Financial Realities


Book Description

Learn how stories shape economic developments. Have you ever pondered why economies and financial markets occasionally exhibit peculiar behavior? Well, a lot of economists will tell you that data and numbers are everything. Therefore, deciphering these numbers is the only way to comprehend the economy. Here's the problem, though. Consumers, businesses, and politicians are the people who power our economies, and they are more nuanced than any statistical analysis can convey. They each have their own beliefs, biases, and passions. Put simply, they each have a story, and stories have the power to influence how they behave, which in turn affects how money acts. These stories have a significant impact on economic results when they gain traction, whether it is by inciting fear during a stock market meltdown or encouraging novice investors to buy Bitcoin in large quantities. Nonetheless, narratives are typically lacking in economic analysis. A novel approach to considering these collective stories is narrative economics. We'll examine this idea in more detail in these blinks and discover how popular narratives influence economic developments. This Book will teach you What viral stories can teach us about diseases; Why Bitcoiners believe they are unique; and How investors acted differently in the wake of the two world wars. CLICK THE BUY BUTTON TO GET YOUR OWN COPY NOW!!!




Good Economics for Hard Times


Book Description

The winners of the Nobel Prize show how economics, when done right, can help us solve the thorniest social and political problems of our day. Figuring out how to deal with today's critical economic problems is perhaps the great challenge of our time. Much greater than space travel or perhaps even the next revolutionary medical breakthrough, what is at stake is the whole idea of the good life as we have known it. Immigration and inequality, globalization and technological disruption, slowing growth and accelerating climate change--these are sources of great anxiety across the world, from New Delhi and Dakar to Paris and Washington, DC. The resources to address these challenges are there--what we lack are ideas that will help us jump the wall of disagreement and distrust that divides us. If we succeed, history will remember our era with gratitude; if we fail, the potential losses are incalculable. In this revolutionary book, renowned MIT economists Abhijit V. Banerjee and Esther Duflo take on this challenge, building on cutting-edge research in economics explained with lucidity and grace. Original, provocative, and urgent, Good Economics for Hard Times makes a persuasive case for an intelligent interventionism and a society built on compassion and respect. It is an extraordinary achievement, one that shines a light to help us appreciate and understand our precariously balanced world.




Never Together


Book Description

An inclusive economic history of America describing two centuries of American racial conflicts since the Constitution was written.




Owning the Olympics


Book Description

"A major contribution to the study of global events in times of global media. Owning the Olympics tests the possibilities and limits of the concept of 'media events' by analyzing the mega-event of the information age: the Beijing Olympics. . . . A good read from cover to cover." —Guobin Yang, Associate Professor, Asian/Middle Eastern Cultures & Sociology, Barnard College, Columbia University From the moment they were announced, the Beijing Games were a major media event and the focus of intense scrutiny and speculation. In contrast to earlier such events, however, the Beijing Games are also unfolding in a newly volatile global media environment that is no longer monopolized by broadcast media. The dramatic expansion of media outlets and the growth of mobile communications technology have changed the nature of media events, making it significantly more difficult to regulate them or control their meaning. This volatility is reflected in the multiple, well-publicized controversies characterizing the run-up to Beijing 2008. According to many Western commentators, the People's Republic of China seized the Olympics as an opportunity to reinvent itself as the "New China"---a global leader in economics, technology, and environmental issues, with an improving human-rights record. But China's maneuverings have also been hotly contested by diverse global voices, including prominent human-rights advocates, all seeking to displace the official story of the Games. Bringing together a distinguished group of scholars from Chinese studies, human rights, media studies, law, and other fields, Owning the Olympics reveals how multiple entities---including the Chinese Communist Party itself---seek to influence and control the narratives through which the Beijing Games will be understood. digitalculturebooks is an imprint of the University of Michigan Press and the Scholarly Publishing Office of the University of Michigan Library dedicated to publishing innovative and accessible work exploring new media and their impact on society, culture, and scholarly communication. Visit the website at www.digitalculture.org.




Marketing Communications


Book Description

Marketing Communications: A Brand Narrative Approach is a mainstream, student-driven text which gives prominence to the driving force of all Marketing Communications: the imperative of Branding. The book aims to engage students in an entertaining, informative way, setting the conceptual mechanics of Marketing Communications in a contemporary, dynamic context. It includes key current trends such as: Brand narrative approach - Cases such as Dove, Harley-Davidson, Nike and World of War Craft feature real-life, salient examples which are engaging for students and reflect the growth of co-authored brand ‘stories’ to help build and maintain brands by customer engagement through meaningful dialogues. Media neutral/multi-media approach - This text has a sound exploration of online and offline synergy combining one-message delivery and multi-media exposures, through examples of companies and political campaigns using ‘non-traditional’ media to reach groups not locking into ‘normal channels’. This brand new text features an impressive mixture of real-life brand case studies underpinned with recent academic research and market place dynamics. The format is structured into three sections covering analysis, planning and implementation and control of Marketing Communications. Using full colour examples of brands, and student-friendly diagrams, the book acknowledges that the modern student learns visually as well as through text. ***COMPANION WEBSITE - www.marketing-comms.com ***