Change of economic climate

Sudden or gradual changes in the expectations of market participants in general and of financial market players in particular, as in the case of the subprime crisis. – As financial psychology has shown, a change in sentiment can have a decisive impact on supply and demand in the financial markets almost completely independently of real economic conditions. Today, it is undisputed that a negative change in sentiment can have so much shearing force that an economy is steered into a downward spiral (depressive maelstrom). – See Animal Spirits, banking crisis, memory, financial crisis, fear thesis, headline hysteria, herd behavior, market impact, sentiment indicators, loss of confidence, payday ground rule.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
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