when i was at IAREP in Rome I got talking to this Israeli psychologist who was working on peoples perceived understanding of macroeconomics. There were 2 key results 1)People vastly over-estimated their expertise 2) They believed in virtuous & vicious cycles i.e. they thought that bad things inevitably went together & likewise good ones. So if you a shock the unemployment & inflation tend to go up, growth goes down etc
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when i was at IAREP in Rome I got talking to this Israeli psychologist who was working on peoples perceived understanding of macroeconomics. There were 2 key results 1)People vastly over-estimated their expertise 2) They believed in virtuous & vicious cycles i.e. they thought that bad things inevitably went together & likewise good ones. So if you a shock the unemployment & inflation tend to go up, growth goes down etc
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