Introduction In the realm of decision-making, mental models play a crucial role in shaping our perceptions and guiding our choices. One such influential mental model is the Phillips Curve. Coined by economist A.W. Phillips in the 1950s, the Phillips Curve suggests an inverse relationship between unemployment and inflation rates. Understanding this mental model is essential, […]
Introduction In the realm of decision-making, humans often find themselves swayed by a range of cognitive biases that lead to irrational choices. One such mental model, the Fisher Effect, holds significant relevance in understanding the intricacies of decision-making processes. The Fisher Effect refers to the tendency of individuals to mistakenly believe that real returns on […]