Consumer Sentiments Drive Economy, Creating Multiple Unpredictable Equilibria
The article explores how people's feelings and expectations about the economy can influence production and employment decisions. The researchers created a model to show that these sentiments can lead to different outcomes, even when there are no obvious reasons for it. They found that there can be multiple stable outcomes, as well as unpredictable patterns driven by consumer emotions. These patterns are not just random variations of the stable outcomes.