UK Business

How news affects people's expectations and drives economic change

Written by Christoph Görtz, Associate Professor in Macroeconomics, University of Birmingham

Immediate reactions to announcements about the future can significantly affect the future economy. Tero Vesalainen/Shutterstock

News of a big pay rise might see you booking the nearest fancy restaurant for a slap-up meal to celebrate, or encourage you to go on a shopping spree even before your raise hits your bank account.

Recent research shows...

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