Economics is a science, which is constantly progressing and interacting with other sciences. Studies in the economics literature discuss how people display a behavior or an attitude in the economic decision- making progress. Psychology is a science which explains the behavior of people and it cannot be ignored that psychology has a profound effect on economics. Human psychology and behaviours show complex structures, stereotyping people as indicating homogeneous behavior is criticized by many academics and researchers.
Economic psychology is a branch of applied psychology defined by Stephen Lea and co-authors as “the study of how individuals affect the economy and how the economy affects individuals”. One way that individuals influence the economy is by their expectations: when expectations are positive people are more likely to spend and borrow, but when negative they are more inclined to save. For those managing the economy, it is therefore important to understand and predict people’s expectations and perceptions of, for example, inflation.
Understanding how the economy affects individuals and households is equally important. For example, the burden of high-value loans, in relation to household income, is a major problem for too many these days, and the economic environment has a significant impact on borrowing behaviour. Easy access to credit has intensified debt problems for some, while exclusion from the mainstream credit market has left others with only high-cost credit options. Although research to date has informed these issues, more work is needed to resolve them.
Although the discipline of Economics and Psychology in Europe originally grew out of an emphasis on consumer behaviour in marketing, it has since expanded its horizons to focus on human behaviour with links to more macro-economic issues such as saving and credit, income and inflation, tax-paying and tax-avoidance, etc. It is concerned with issues of choice and decision-making.  Economic psychologists are also interested in such diverse area as environmental issues, token economies, experimental gaming, and time preferences.  Such diversity of subjects makes Economic Psychology an exciting and challenging interdisciplinary research field.
The integration of economics and psychology has created a vibrant and fruitful emerging field of study.  Economics and Psychology take a broad view of the interface between these two disciplines, going beyond the usual focus on "behavioural economics."  The influence of psychology on economics has been responsible for a view of human behavior that calls into question the assumption of complete rationality (and raises the possibility of altruistic acts), the acceptance of experiments as a valid method of economic research, and the idea that utility or well-being can be measured.  Taken together, the essays in Economics and Psychology offer an assessment of where this new interdisciplinary field stands and what directions are most promising for future research, providing a useful guide for economists, psychologists, and social scientists.