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Narratives and Economic Policy: Theoretical Explorations and the Case of Central Bank Communication in Brazil

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  2. Economics, Finance, Business & Management
  3. Journal of Contextual Economics – Schmollers Jahrbuch
  4. Vol. 141, Issue 3
  5. pp. 243–272

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Herrmann-Pillath, C., Bau Macedo, L. Narratives and Economic Policy: Theoretical Explorations and the Case of Central Bank Communication in Brazil. Journal of Contextual Economics – Schmollers Jahrbuch, 141(3), 243-272. https://doi.org/10.3790/schm.141.3.243
Herrmann-Pillath, Carsten and Bau Macedo, Luís Otávio "Narratives and Economic Policy: Theoretical Explorations and the Case of Central Bank Communication in Brazil" Journal of Contextual Economics – Schmollers Jahrbuch 141.3, 2021, 243-272. https://doi.org/10.3790/schm.141.3.243
Herrmann-Pillath, Carsten/Bau Macedo, Luís Otávio (2021): Narratives and Economic Policy: Theoretical Explorations and the Case of Central Bank Communication in Brazil, in: Journal of Contextual Economics – Schmollers Jahrbuch, vol. 141, iss. 3, 243-272, [online] https://doi.org/10.3790/schm.141.3.243
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Narratives and Economic Policy: Theoretical Explorations and the Case of Central Bank Communication in Brazil

Herrmann-Pillath, Carsten | Bau Macedo, Luís Otávio

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 141 (2021), Iss. 3 : pp. 243–272

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Publisher Name
Duncker & Humblot
DOI
https://doi.org/10.3790/schm.141.3.243
Language
English
Pages
30
Keywords

Author Details

Carsten Herrmann-Pillath, Max Weber Centre for Advanced Cultural and Social Studies, University of Erfurt, Steinplatz 2, 99085 Erfurt, Germany.

Luís Otávio Bau Macedo, Economics Department, Universidade Federal de Mato Grosso, Av. dos Estudantes, nº 5055, Cidade Universitária, Rondonópolis – MT, 78736 – 900, Brazil.

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Abstract

Increasingly, economists study narratives and their causal impact on economic processes. This paper proposes a new theoretical framework of narrative analysis that is based on the philosophy of language, especially speech act theory, motivated by the observation that, so far, the economic approaches focus on the representational function of narratives and tend to emphasize negative consequences of biased, distorted, and simplified representation. In contrast, we define narratives as a medium of distributed cognition and mediators of collective agency in networks of agents operating in an uncertain and complex world that is materially constituted by their actions. After sketching the theory, we introduce a case study on the role of central bank communication in recent economic developments in Brazil for illustrative purposes, focusing on the role of financial audiences and a specific narrative genre, the “austerity genre” induced by the Brazilian Central Bank.

Table of Contents

Section Title Page Action Price
Narratives and Economic Policy:Theoretical Explorations and the Caseof Central Bank Communication in Brazil* 1
Abstract 1
1. Introduction 1
2. Elements of Narrative Analysis in Economics 3
2.1 Speech Acts as Constituents of Narratives 4
2.2 Economic Roles of Narratives 7
2.3 Narratives and Audiences 9
3. Case Study: The Austerity Genre, Financial Audiences,and Central Bank Communication in Brazil 10
3.1 Context 10
3.2 Narrative Process Analysis:Narratives and Central Bank Communication,2015–2016 12
3.3 Narrative Functions of Central Bank Communication 16
3.4 Performativity of the Austerity Genre,Plurality of Discourses, and Narrative Realism 21
References 26

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