Most of us have heard that thinking something will happen will make it happen. Whether this is superstition, or a New Age ideology - has anyone read The Secret? Or seen What The Bleep Do We Know? which takes a more scientific approach to this theory - this belief does carry some truth, at least in the case of economics and the behavior of people. Economics is after all a social science. The idea is, when we think something like inflation is going to happen it usually happens. The same goes for deflation. From bank runs to the housing crash of 2008, why did these events take place? There are many (unethical) reasons but one among them is perverse expectations, or as George Soros calls it, the theory of reflexivity. In the first episode of season 2 (welcome!), Natalie and Lev explore perverse expectations and give concrete examples of how this plays out in our day-to-day lives. Your world might start to look a little different.

Episode edited by Natalie Peart

Music: Opening, Ben Flood. Closing, "Yo Yo Check It" by Marquice Turner