News and uncertainty about COVID-19: Survey evidence and short-run economic impact.

Consumer expectations Large shock Monetary policy Survey Uncertainty

Journal

Journal of monetary economics
ISSN: 0304-3932
Titre abrégé: J Monet Econ
Pays: Netherlands
ID NLM: 101516033

Informations de publication

Date de publication:
Jul 2022
Historique:
received: 30 11 2021
revised: 05 02 2022
accepted: 07 02 2022
pubmed: 16 2 2022
medline: 16 2 2022
entrez: 15 2 2022
Statut: ppublish

Résumé

A tailor-made survey documents consumers' perceptions of the US economy's response to a large shock: the advent of the COVID-19 pandemic. The survey ran at a daily frequency between March 2020 and July 2021. Consumer's perceptions regarding output and inflation react rapidly. Uncertainty is pervasive. A business-cycle model calibrated to the consumers' views provides an interpretation. The rise in household uncertainty accounts for two-thirds of the fall in output. Different perceptions about monetary policy can explain why consumers and professional forecasters agree on the recessionary impact, but have sharply divergent views about inflation.

Identifiants

pubmed: 35165494
doi: 10.1016/j.jmoneco.2022.02.004
pii: S0304-3932(22)00021-6
pmc: PMC8827064
doi:

Types de publication

News

Langues

eng

Pagination

S35-S51

Informations de copyright

© 2022 Elsevier B.V. All rights reserved.

Références

Proc Natl Acad Sci U S A. 2021 May 25;118(21):
pubmed: 34006634
Eur Econ Rev. 2021 Oct;139:103893
pubmed: 34538879
J Econ Behav Organ. 2021 Sep;189:443-469
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pubmed: 35185229
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pubmed: 32834716
J Public Econ. 2020 Nov;191:104274
pubmed: 32921841

Auteurs

Alexander M Dietrich (AM)

University of Tuebingen, Nauklerstraße 50, 72074 Tuebingen, Germany.

Keith Kuester (K)

University of Bonn and CEPR, Adenauerallee 24-42, 53113 Bonn, Germany.

Gernot J Müller (GJ)

University of Tuebingen, CEPR and CESifo, Nauklerstraße 50, 72074 Tuebingen, Germany.

Raphael Schoenle (R)

Brandeis University, CEPR and CESifo, 415 South Street, 02454 Waltham, MA, USA.

Classifications MeSH