Mahfi Eğilmez on Expectations and the Emphasis on Trust
It is stated that economic decisions are shaped not only by current conditions but also by expectations for the future, and that trust is essential for a lasting balance.
In his article, Mahfi Eğilmez discusses the decisive impact of expectations and trust factors on the economy, emphasizing that institutional trust is essential for a permanent balance.
The Role of Expectations in the Economy
One of the topics that classical and neoclassical economics did not dwell on sufficiently for a long time was the impact of expectations on the economy. In these approaches, the economy was treated like a mechanical system.
The Human Factor and Future Decisions
There are humans, not machines, inside the economy, and decisions are shaped not only by current conditions but also by expectations regarding the future.
Psychological Factors and Behavioral Economics
Following the Great Depression, uncertainty and trust became prominent in macroeconomic discussions. Today, behavioral economics reveals the effects of people's thoughts regarding the future.
Expectation Factors in the Turkish Economy
In the case of Turkey, leading indicators such as the Central Bank's expectation surveys and PMIs allow the market to be monitored. When expectations deteriorate, it becomes difficult to fix the economy solely with interest rates.
Institutional Trust and Lasting Balance
Improving expectations depends on monetary policies as well as the institutional structure inspiring trust. The rule of law and transparency carry great economic importance.