Economic Psychology

  • 3 Posts
  • 1 Sections
  • 1 Types
August 31, 2024 4 min read Definitions
Animal Spirits: Economic Drivers Fueled by Human Emotions
Economics Finance Keynesian Economics Investment Behavior Entrepreneurial Hunches Economic Psychology Market Dynamics
An exploration of 'Animal Spirits' as introduced by John Maynard Keynes, its historical context, types, and importance in economics and beyond.
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August 31, 2024 4 min read Definitions
Herd Mentality: The Tendency of Investors to Mimic the Actions of a Larger Group
Psychology Finance Behavioral Finance Investing Market Trends Crowd Behavior Economic Psychology
Herd mentality refers to the phenomenon where individuals in a group act collectively without centralized direction. In finance, it describes how investors behave similarly and follow each other, often ignoring their own analysis in favor of the popular trend.
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August 31, 2024 5 min read Definitions
Money Illusion: Mistaking Nominal for Real Changes
Economics Behavioral Finance Money Illusion Nominal vs. Real Inflation Behavioral Economics Economic Psychology
An in-depth exploration of the concept of Money Illusion, where individuals misinterpret nominal changes in wages and prices as real gains, without accounting for inflation.
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