Dietrich, Alexander M.; Schoenle, Raphael; Müller, … - 2024
News - anticipated changes of an economy's fundamentals - drive the business cycle. Climate change is big news: it will … news, this paper focuses on climate-change expectations. First, we measure the expected economic impact of climate change … climate change. Second, we calibrate a New Keynesian model with rare disasters to the survey results and find that shifts in …