Business Quote by Christina Romer
“Recent research suggests that New Deal programs may actually have had their primary impact on the economy by influencing consumer and business expectations of future growth and inflation.”
About This Quote
Source Paper: “The New Deal and the Economy” by Christina Romer, 1992
The New Deal’s main effect was shaping expectations about growth and inflation, which in turn drove economic behavior.
In simple terms: Expectations mattered more than direct spending.
Key Takeaway
Consider how policy shapes future expectations.
Themes
economics
policy
expectations
history
Mood
analytical
reflective
Type
historical
economic
policy
When to use this quote
- business planning
- investment decisions
- government spending
- inflation forecasting
Key Concepts
Macroeconomic theory
psychology of expectations
Questions to Reflect On
- How do expectations translate into real economic outcomes?
- What evidence shows expectations changed after the New Deal?
A Different Perspective
Expectations can be hard to measure and may be influenced by many other factors.
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