[AlbertCory]

If I can jump in here: it's something like "be very careful when making extreme claims, because they probably won't be believed. If your claims turn out to be false, then they really won't be believed next time."

So it's about trust and reputation. If the village elder, whom everyone trusts, cried "wolf!" the villagers would be inclined to believe him.

[swayvil]

That means the same as what he said.

[nh23423fefe]

No. nicwolff said the moral was about villagers and their skepticism. AlbertCory correctly said the moral is how lying damages the boy's reputation.

The moral to the listener is to not be like the boy. The moral is not, to be unlike the villagers.

[phailhaus]

No, because the lesson is that the boy shouldn't have lied. It's not "the village should have believed him again".

[AlbertCory]

no it doesn't. See the other replies.