New paper : News Driven Business Cycles: Insights and Challenges

manufacturingbwI posted on my “current work” page a new paper with Paul Beaudry “News Driven Business Cycles: Insights and Challenges“. As written in the abstract,

There is a widespread belief that changes in expectations may be an important independent driver of economic fluctuations. The news view of business cycles offers a formalization of this perspective. In this paper we discuss mechanisms by which changes in agents’ information, due to the arrival of news, can cause business cycle fluctuations driven by expectational change, and we review the empirical evidence aimed at evaluating its relevance. In particular, we highlight how the literature on news and business cycles offers a coherent way of thinking about aggregate fluctuations, while at the same time we emphasize the many challenges that must be addressed before a proper assessment of its role in business cycles can be established.

Key Words are “News”, “Business Cycles”, “Expectations”, “Pigou”, “Keynes”, “Recessions”.

JEL Classification code is  E3.

Leave a Reply / Déposer une réponse

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s