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What is the meaning of Inertia of Expectation
We now move a bit away from the political economy of policy process to look into the inherent currents responsible for inaction and delay. It has been a burning topic of modern development economics which aims to answer why 'inertia' to change is observed in economics. The term 'inertia' is the fact that at any given point of time, a particular policy (political and therefore social) equilibrium is in force. Further, the system has been stuck to this equilibrium for a very long time. Then the solutions proposed by multiple equilibria or cooperative games paradigms do not give a convincing explanation to the above question. They simply exhibit that such multiplicities exist and suggest a 'focus equilibrium' solution to explain the behaviour.
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