The influence of psychological factors on the economy

Abstract

The connection between economics and psychology is indisputable. Every single people’s decisions are being influenced by their feelings, psychological well-being and sometimes by external factors, which are influencing peoples mind at first as well. Everyone has an impact on the economy, and the majority of people’s decisions can be foreseen in advance, only by watching what is going on in the world. The recent months had a huge impact on people’s financial decisions, but we can actually check if the health factor has an impact on economies There will be applied TOPSIS method to check whether health and psychological factor does have an impact on countries economy. Even though our country does not spend much attention to people behaviour analysis and is not prepared to any sharp changes of people’s actions and tendencies. Analysing people and their minds could be useful by forecasting people’s actions and being prepared for any terrible scenarios, which can be easily avoided.