How Economic Laypeople Perceive Economic Growth and Inflation

The present dissertation focuses on two phenomena which play a central role in the implementation of economic and political reform measures, namely biases in the perception of the economy and the stability of peoples¿ concepts on the economy. It is found that people tend to underestimate economic growth in the long run. On the other hand, they tend to overestimate inflation. Various theoretical and practical implications of these findings are discussed.