Can a good story change economic reality? episode artwork

EPISODE · Jan 14, 2026 · 8 MIN

Can a good story change economic reality?

from The Indicator from Planet Money

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

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Can a good story change economic reality?

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