Self-realization refers to the process of giving full play to one's talents and potentials and realizing one's ideals and ambitions in a suitable social environment.
Self-realization refers to the process of giving full play to one's talents and potentials and realizing one's ideals and ambitions in a suitable social environment. It also refers to the realm where the individual's physical and mental potential is fully exerted. Maslow, an American psychologist, believes that this is the personality tendency of individuals to pursue the highest achievement and the highest level of human needs.
The meaning of self-realization in economics is a neutral word, which is derogatory in most cases (other editors' note: the derogatory meaning here does not mean the moral criticism of self-realization, but that self-realization is often used to explain the causes of adverse events). If a subject anticipates a specific event in the economy and takes pre-action according to this event, it will eventually lead to this specific event. (If the subject does not expect such an event to happen, then the probability of it happening is very small. It can be said that this event is self-fulfilling.
For example, suppose people think that the Mexican peso will depreciate in the future. Then investors will give Mexico a bigger discount on asset risk. This expectation led to an increase in interest rates in Mexico, which led to a devaluation of the Mexican currency. Therefore, the expectation that a currency will depreciate in the future will trigger its actual depreciation. This kind of event can be said to be self-realization.