sentiment (considering both confidence and uncertainty) and economic activity. Second, we review existing empirical measures of … sentiment, in particular consumer confidence, stock market volatility (SMV) and Economic Policy Uncertainty (EPU), on monthly … across countries, suggesting the existence of a global factor. Consumer confidence has the closest co-movement with economic …

use the heterogeneous-prior framework of Angeletos, Collard, and Dellas (2018) to accommodate confidence-driven business … cycle fluctuations. We show that financial frictions strongly amplify the response to confidence shocks - more strongly than …

Confidence dropped universally across countries and sectors during the height of the COVID-19 pandemic in Europe …. Latest survey data suggest that confidence is on track for a v-shaped recovery. The swift implementation of stringent … well with both the drop and recovery of confidence across countries. …

government institutions, on the contrary, is strongly volatile, and in addition, develops slightly anti-cyclically. It applies …