Business sentiment and economic outcomes

How much is current volatility in financial markets driven by fear or uncertainty about future developments rather than by concrete economic news?  IEA Communications and Public Affairs Officer Kieran Neild-Ali sat down to discuss this with Dr Ali Kabiri who is Head of the Department of Economics and International Studies at the University of Buckingham. Dr Kabiri recently co-authored a report for the Academic Journal, the Economic History Review, on the role of sentiment in the US economy: 1920 to 1934. The research explored how sentiment moved the economy at critical moments in the 1920s.    Read Dr Kabiri's IEA Blog post here.