Good News About Future Economy Can Drive Business Booms and Busts
The article suggests that good news about future productivity or technical advancements can boost the economy. The researchers created a model with three main parts: how much capital is being used, the costs of making changes to investments, and people's preferences for work. This model can explain economic downturns without needing bad productivity news. Instead, it shows that lackluster news about future productivity can cause recessions.