Economic expectations are ubiquitous. Some are formed formally by deploying sophisticated modern mathematical tools. Others through natural skills honed by evolution. Both are powerful in their impact on the macro-economy.
Financial markets assign a great deal of importance to expectations. Managements of companies provide guidance and markets, in turn, build expectations regarding their profits. Professional economists spar similarly with macro-economic variables to build expectations around growth, inflation and similar indicators of the health of the economy.
Expectations play an important role in decision-making. Enterprises and the financial markets, for example, allocate funds that reflect their expectations.
Similarly, consumers, too, have
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