Angeletos, George-Marios; Collard, Fabrice; Dellas, Harris - National Bureau of Economic Research (NBER) - 2014
We enrich workhorse macroeconomic models with a mechanism that proxies strategic uncertainty and that manifests itself as waves of optimism and pessimism about the short-term economic outlook. We interpret this mechanism as variation in confidence and show that it helps account for many salient...