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I think this is a common misconception about the economy and the study of economics. Everyone who participates in the economy has some mental model of the econ
by SantalBlush 5y ago
I think this is a common misconception about the economy and the study of economics.
Everyone who participates in the economy has some mental model of the economy. That means anyone who accepts money as payment, or takes out a loan, or opens a bank account. In their model, cash will hold its value reasonably well, interest rates won't change too dramatically, etc. There is no agnosticism when it comes to the economy, and you make decisions based on your mental model of the economy on a daily basis.