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Psychological impact of economic policy

The emotional and cognitive reaction experienced by individuals and groups as a result of economic decisions and financial measures taken by the state, such as tax policies, welfare programs, resource allocation, or economic reforms. This impact is not limited to temporary reactions; It affects people’s perceptions of social justice, as well as their perception of their economic and security futures, which is reflected in their political attitudes and social behaviour. Thus, the psychological impact of economic policy shows that economic decisions are not neutral, but always have emotional and psychological consequences that change the relationship between the state and citizens and determine the level of political legitimacy and trust in institutions.

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