Long term expectations and aggregate fluctuations
In line with Keynes’ intuition, volatility in the stock market and in real economic activity are linked by expectations of long term profits. We show that analysts’ optimism about the long term earnings growth of S&P 500 firms is associated with a near term boom in major US financial markets, re...
| Main Authors: | , , , , |
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| Format: | Working paper |
| Language: | English |
| Published: |
National Bureau of Economic Research
2023
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