The day-do-day business of fairy government is recorded in writing by L'Evallier, backed up by Palace officials, and is roughly the equivalent of Hansard. Creative writing is not allowed here - it has to be the truth, the whole truth and nothing but the truth.
Village entertainment does involve making up new fairytales but these tend to be recited orally rather than written down. Some villages have kept written records of these but the stories tend to be specific to the local area so have not taken off across the magical realm.