[This is part of the series: The Complete Guide To Economics 101.]
What is a rosy scenario policy?
A Rosy Scenario Policy is when the government offers nothing but good economic forecasts.
Sure, some part if it might have to do with controlling expectations – and the fact that expectations can turn into reality.
But what would you do?
Congress, Senators, the President, bureaucrats – can you imagine them all coming out and saying:
Over the next year, the economy will probably shrink by 4-5%, we expect the stock market to go down by 30-50%, and unemployment to go to 8-10%.
They will never say that.
