Comment on “No firm is an island? How industry conditions shape firms’ expectations” by Philippe Andrade, Olivier Coibion, Erwan Gautier and Yuriy Gorodnichenko
| Authors | |
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| Publication date | January 2022 |
| Journal | Journal of Monetary Economics |
| Article number | 57-61 |
| Volume | Issue number | 125 |
| Organisations |
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| Abstract | Andrade et al. analyze the data from a large panel of firms and show how sector-specific shocks erroneously influence firms’ outlooks about the aggregate economy. This paper is part of a broader research agenda that has extensively documented the existence of information rigidities using data from large-scale surveys of households and firms. This comment discusses the implications of this research agenda for central banking in light of a complementary empirical method, namely laboratory experiments, and their use in informing macroeconomic policies. |
| Document type | Comment/Letter to the editor |
| Note |
Commentary to: P. Andrade, O. Coibion, E. Gautier & Y. Gorodnichenko (2022) No firm is an island? How industry conditions shape firms' expectations. In: Journal of Monetary Economics, 125 (2022), pp. 40-56. |
| Language | English |
| Published at |
https://doi.org/10.1016/j.jmoneco.2021.06.003
(Final published version)
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