Coronavirus Fears and Macroeconomic Expectations

By C. Binder. Review of Economics and Statistics, 2020

219 citations recorded by the source corpus.

Abstract The Federal Reserve cut interest rates on March 3, 2020, in response to COVID-19. On March 5 and 6, I surveyed over 500 consumers about their concerns about COVID-19, awareness of the Fed's announcement, and macroeconomic expectations. Most consumers were concerned about effects of COVID-19 on the economy, their health, and their personal finances. About 38% were aware that the Fed had cut interest rates. Greater concern is associated with higher inflation expectations and more pessimistic unemployment expectations. I informed respondents about the Fed's announcement, which led some consumers to become more optimistic about unemployment and revise inflation expectations downward.

Subfields: Economics and Econometrics, Modeling and Simulation, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/89578a7fd48e83ab86cf54d7341cf2fe635329c5

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Citations in the corpus

Consumer Spending Responses to the COVID-19 Pandemic: An Assessment of Great Britain (2020, background): “Binder (2020) conducts an online survey on US consumers on 5th and 6th March 2020, to solicit information regarding concerns and responses to the COVID-19.”
A literature review of the economics of COVID‐19 (2020, background): “Binder (2020) conduct an online survey of 500 United States consumers to investigate their concerns and responses related to COVID-19, which indicated those items of consumption on which they were spending either more or less.”
Designing Information Provision Experiments (2020, background): “In the context of the Covid-19 pandemic, Coibion et al. (2020b) and Binder (2020) study how provision of information about policy responses shapes households’ macroeconomic expectations and spending plans.”
The Effect of Macroeconomic Uncertainty on Household Spending (2021, background): “The COVID-19 epidemic has been associated with exceptionally high levels of uncertainty for certain groups of households and has contributed to a reduction in their spending (Binder 2020).”
The impact of the COVID-19 pandemic on business expectations (2021, background): “Consistent with Binder (2020a), it may be the case that those most concerned by the coronavirus are those most vulnerable to spikes in food prices.”
Changes in Consumers’ Purchase Patterns as a Consequence of the COVID-19 Pandemic (2021, background): “Donthu and Gustafsson [7] declared that this economic catastrophe has had severe consequences all over the world, affecting each country around the globe and leading to dramatic changes in the operations of business entities and the behavior of consumers, who mostly fear for their health and persona”
COVID-19 pandemic and unemployment dynamics in European economies (2021, unknown): “In the existing literature, we have found many studies on the impact of the COVID-19 on oil prices (Narayan, 2020) and stock market volatility (Baker et al., 2020).”
The Cost of the Covid-19 Crisis: Lockdowns, Macroeconomic Expectations, and Consumer Spending (2020, unknown): “Binder (2020) shows that 30% - 40% of Americans are very concerned about the corona crisis, postponed travel and delayed purchases of larger ticket items as early as March 2020 but became more optimistic about the unemployment situation and revised downward their inflation expectations once being…”