tag:blogger.com,1999:blog-38545607.post8036459083764405440..comments2024-03-09T10:26:48.789+00:00Comments on economics, psychology, policy: Measuring the Financial Sophistication of HouseholdsEmma Watsonhttp://www.blogger.com/profile/11466193733741012673noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-38545607.post-90112094910643692152009-02-17T21:40:00.000+00:002009-02-17T21:40:00.000+00:00when i was at IAREP in Rome I got talking to this ...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 etcKevin Dennyhttps://www.blogger.com/profile/17891633553910348880noreply@blogger.com