For example, putting in place narratives to filter and process the vast array of information available and arrange it in order – a cognitive trick to make sense of an uncertain world. Building institutions has been key to providing economic stability. Inclusive institutions are essential for economic development.5  The importance of economic narratives Following financial crises, political uncertainty is often elevated.
According to a recent study,6 votes for extreme parties can increase by on average 30%, while government majorities shrink, parliaments end up with a larger number of parties and become more fractionalised. Thus the political landscape becomes more gridlocked at precisely the moment when decisiveness is typically required.