In an essay on the intellectual bankruptcy of standard (and particularly Central Banker economics), Whithered Economics, I asked the question:  “Is there a reconstituted macroeconomics in our future?”  Many economists are now acknowledging their gaps, and a few are advancing interesting ideas.  Robert J. Schiller is preeminent.

From his NARRATIVE ECONOMICS, January 2017, COWLES FOUNDATION DISCUSSION PAPER NO. 2069

“Mutations in narratives spring up randomly, just as in organisms in evolutionary biology, and when they are contagious, the mutated narratives generate seemingly unpredictable changes in the economy.”

Changes in the basic story that people tell, how they feel, what is important to them, determine how they act in their economic and investment choices.  If a story is broadly contagious, its effect will be felt in the economy.

The process of “narrative mutation” can be described perfectly by Kuhn’s Revolution.