Economic decisions aren’t only driven by hard data. A compelling story can change economic behavior and outcomes. In today’s episode, we explore real-world examples of “narrative economics” like how the Suez Canal ended up getting built. And we ask: why do narratives sometimes matter more than truth or data? 

Related episodes: 
This indicator hasn’t flashed this red since the dot-com bubble 
Tariffs. Consumer sentiment. Cape Ratio. Pick The Indicator of The Year! 
The Beigie Awards: Manufacturing takes center stage 

For sponsor-free episodes of The Indicator from Planet Money, subscribe to Planet Money+ via Apple Podcasts or at plus.npr.org. Fact-checking by Sierra Juarez. Music by Drop Electric. Find us: TikTok, Instagram, Facebook, Newsletter.  


To manage podcast ad preferences, review the links below:

See pcm.adswizz.com for information about our collection and use of personal data for sponsorship and to manage your podcast sponsorship preferences.

Learn more about sponsor message choices: podcastchoices.com/adchoices

NPR Privacy Policy