væntingarbreytingar
Væntingarbreytingar, or expectation shifts, is a concept in economics and psychology referring to changes in people's beliefs about future outcomes. These shifts can influence present behavior and economic decisions. For instance, if individuals expect a recession, they might reduce spending and increase savings, which can then contribute to a recessionary environment. Conversely, widespread optimism about future economic growth can lead to increased investment and consumption, potentially fostering that growth.
The phenomenon is closely linked to the self-fulfilling prophecy. If enough people believe something will happen,
Understanding expectation shifts is crucial for policymakers. Central banks and governments often try to manage public