“Does uncertainty drive the business cycle? Or, vice versa, does the business cycle actually cause uncertainty?” said Ruediger Bachmann, associate professor of economics at Notre Dame.
Bachmann specializes in the macroeconomics of heterogenous agents. He serves as an associate editor for The Economic Journal and as a member of the executive committee of the German Economic Association. He has done extensive work on economic uncertainty, helping establish that it has a counter-cyclical connection to the business cycle.
His current research seeks to answer key questions about the role of uncertainty in the business cycle, such as the causality of uncertainty and the specific mechanisms by which uncertainty triggers fluctuations.
“We need to better understand how macroeconomic phenomena influence different people … because we want to know who’s hurt, for example, by a recession most—or who benefits most from trying to stabilize a recession,” Bachmann said.
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