"Pseudo-wealth" is a very interesting concept

For several years, Joseph Stiglitz has been developing the concept of "pseudo-wealth" (see references in the Appendix). The heterogeneity of economic agents and the abnormal optimism among some of them in certain periods give rise to expectations of wealth, perceived wealth (pseudo-wealth) that is markedly higher than actual wealth. We will give some examples of this type of situation. At a certain point, pseudo-wealth corrects and returns to the level of actual wealth, and this is what triggers crises. This concept of "pseudo-wealth", fundamentally linked to the heterogeneity of beliefs, seems very relevant.