What if a Recovery Is All in Your Head?
Beyond fiscal stimulus and government bailouts, the economic recovery that appears under way may be based on little more than self-fulfilling prophecy. Consider this possibility: after all these months, people start to think it’s time for the recession to end. The very thought begins to renew confidence, and some people start spending again — in turn, generating visible signs of recovery. This may seem absurd, and is rarely mentioned as an explanation for mass behavior late in a recession, but economic theorists have long been fascinated by such a possibility. The notion isn’t as farfetched as it may appear. As...
Original Article: Forum: News/Activism
Tags: Confidence, Economic Recovery, Economic Theorists, Fiscal Stimulus, Notion, People, Recession, Self Fulfilling Prophecy, Visible Signs