×
Passenger-vehicle sales in China rose at the slowest pace in five months in April 2015 as weaker economic expansion hurt demand (photo: dpa)

Unrealistic expectations of growth lead to wrong decisions

Governments have been ignoring the hard economic facts of life to deliver political dreams which meet the expectations of voters. They have been living in a world of make-believe by failing to deliver the reforms which current economic positions demand but meddling with more and more government intervention.

<i>Policymaking follows people’s expectations to an increasingly large extent. In turn, public opinion tends to neglect what the economy can really deliver, and focusses on the authorities’ moves to ensure that reality meets expectations. This results in a distorted causal mechanism which creates unrealistic expectations, provokes tensions, and creates a rising demand for m...

Unlock the report
8.95 EUR
 
Secure, instant payment by credit card
Professor Enrico Colombatto
Questionable regulation and over-optimistic promises of high growth eventually led to disappointment about economic performance in a number of European countries prior to 2007
read more about it in the report
Who will benefit?
  • Report is targeted to the decision makers in cross country manufacturing – suppliers, manufacturers, logistics.
  • Also considered useful for the administrative university facilities, to better understand the possible effects of current decisions.
By clicking "I Agree" below, you acknowledge that you accept our Privacy Policy and Terms and Conditions. Feel free to check out our policies anytime for more information.
I agree