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Where does the policy originate? If from e.g. polls, then the policy is directly influenced by opinion which often comes from hearing other opinions.
by dermesser 4y ago
Where does the policy originate? If from e.g. polls, then the policy is directly influenced by opinion which often comes from hearing other opinions.
- 2devnull 4y agoThe most important macroeconomic policy wrt recessions is monetary and they look at prices, the CPI and things that signal a hot (too strong) economy. If they paid attention to consumer sentiment, whether or not people expected a recession, they would not hike rates or would actually cut them. It’s more complicated than I can lay out in a short post, so I would just ask you or the parent poster to provide an example of a recession that was driven by sentiment alone. I can’t think of any.