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Policy, decisions, are all made by people, who read the news. I'd say this can easily lead to a self fulfilling prophecy: if you expect the economy to go bad, y
by ragebol 4y ago
Policy, decisions, are all made by people, who read the news. I'd say this can easily lead to a self fulfilling prophecy: if you expect the economy to go bad, you don't hire or even fire people. If enough businesses do this, lots of people have less money to spend, etc etc.
I jut wonder why the economy goes through such cycles and how to break that cycle.
- 2devnull 4y ago“wonder why the economy goes through such cycles” Ray Dalio has written some very easy to digest books on the debt cycle. That’s not the full picture but a good start. There’s an entire field of study around all this stuff and economists never agree completely —if they did they would have no job- but as I understand it sentiment is a predictor of recession but it tends to lag other things like interest rates and gas prices.
- satvikpendem 4y ago> I jut wonder why the economy goes through such cycles and how to break that cycle. You answered your own question there. If funding and policy is made by humans, they'll be influenced by others and if everyone starts hiring or firing, pretty soon you'll have a bubble or a recession, respectively. The only way to stop that is to not have humans make decisions.
- ragebol 4y agoComputer for eg high-frequency trading are still 'reading'/interpreting the news, so even computers have this issue.