People willing to pay more to curb business cycle – study
Survey data challenges assertion that consumers would only make minimal sacrifices
Consumers in advanced economies are willing to make significant sacrifices if it means reduced variability of output and inflation, a new study by the US National Bureau of Economic Research finds.
The working paper challenges the assertion by the economist Robert Lucas that consumers will sacrifice only hundredths of a percentage point of their lifetime consumption to smooth out business cycles.
A team of academic and central bank economists carried out household surveys in 2024 to ask people how
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