Tech News Shocks Drive Economic Growth and Stock Market Surge
The article explores how news about new technologies can impact the economy. By analyzing patent applications, the researchers identified technology news shocks that affect productivity and economic fluctuations. These shocks lead to a slow but significant increase in economic activity, with prices initially dropping before stabilizing. The stock market quickly reacts to these news shocks, but consumers take longer to adjust their expectations. Overall, technology news shocks play a significant role in shaping business cycles and economic growth.