Tell me a story

Summary

The economists who attempt to predict the consequences of interactions between events, policies and institutions are storytellers. Stories that interpret and define economic reality, such as the epidemic triggered by COVID-19.

Key points

• Key points:
• The outbreak of a global epidemic, which has caused a negative supply-demand shock with feedback from the reaction of the financial markets, has led to peak uncertainty about economic prospects.
• The more uncertain the outlook, the more room there is for stories, including contradictory stories that will mutate with the arrival of new information.
• In the end, the most relevant factors for the reality of the economy will be the epidemic's infection and mortality rates, as well health and containment measures. These will be the variables to which the economists will adapt their stories.

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