It is thus possible that people underestimate the effect of current consumption on future consumption and may under appreciate the formation of a habit. 16. Behavioral economics also throws useful insights for policy makers. Researchers at the Federal Reserve Bank of Boston are engaged in studying the implications of behavioral economics for economic policy.
The demand for fixed investment and infrastructure loans particularly relating to the CPEC projects is expected to rise. Banks with relevant expertise in long-term project financing and resources such as the Bank of China would be the key player to meet this additional demand.