Writer briefly introduce general idea of FAE then he picked 2 people in history as example, "Alan Green" span who is a hero among central bankers and stable inflation, together with robust and stable growth. "Burns" who gave us high and rising inflation, together with anemic and volatile growth. Writer's idea is that whether we exaggerate the role of policy decisions and understate of role of luck. The reason is that Bad inflation performance of the 1970s and the good inflation performance of the 1990s were not limited to the US.
Also he concluded reflection on Presidents which is similar thoughts, Bill clinton gets too much credit for the booming economy of the 1990s, and Jimmy carter gets too much blame for the lousy economy of the 1970s. And this story tells a term which is Fundamental Attribution Error. When I was Interesting is that an economic also get affected on FAE situation. And during reading I was looked up self- serving bias and just- word hypothesis form our text book just for curiosity and I thought it could be next step. Text book defines that for self-servig bias when it comes to explaining their own behavior, to take credit for one's good actions and rationalize one's mistakes. Just- word hypothiesis, attributions are also affected by the need to believe the the world is fair and that justice prevails, and particulary that good people are rewarded and bad guys punished. It helps people make sense out of senseless events and feel safe in the presence of threatening events.
No comments:
Post a Comment