Post-Election Political Divergence in Economic Expectations

From Quantitative Ease by Carola Binder
January 8, 2017 - 4:49pm

"Note that among Democrats, year-ahead income expectations fell and year-ahead inflation expectations rose, and among Republicans, income expectations rose and inflation expectations fell. Perhaps the most drastic shifts were in unemployment expectations:rising unemployment was anticipated by 46\% of Democrats in December, up from just 17\% in June, but for Republicans, rising unemployment was anticipated by just 3\% in December, down from 41\% in June. The initial response of both Republicans and Democrats to Trump’s election is as clear as it is unsustainable: one side anticipates an economic



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