An example of something that was counter-intuitive
Some countries try to stimulate their economies by increasing the money supply. When people have a lot of money, you would expect them not to be poor since they can buy whatever they desire. Economists have tried to explain what happens in most countries where such policies are implemented. In most cases, it is found that people tend to become poorer despite the availability of money. The common intuition is that the economy will get stimulated, but economists describe this as a country being in a liquidity trap. People demand more than what is the productive capacity of their ...
