Leading the Country (and the Economy)
As America inaugurates its 44th president today, it may be Barack Obama’s leadership style, just as much as his economic policies, that will help to turn the economy around, according to Roberto Weber, associate professor of social and decision sciences at Carnegie Mellon. Given the constant influx of bad economic news, Weber, an expert in behavioral economics, says that the most effective way to deal with a market spiral is to provide good leadership. “In order to start risking higher investment choices, people need to have confidence that others will do so as well, that is they need to believe that others have confidence,” he said. “A highly visible and trusted public leader might be able to produce this confidence and the belief that others share this optimism.”
Weber talks about his recent research in this podcast.