Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/265326 
Year of Publication: 
2022
Series/Report no.: 
Bank of Finland Research Discussion Papers No. 10/2022
Publisher: 
Bank of Finland, Helsinki
Abstract: 
We document a remarkable increase in economic belief polarization - disagreement - regarding the future state of the economy across Europe during the Covid-19 pandemic. We find evidence suggesting that belief polarization may have impeded the implementation of pandemic response measures such as social distancing and teleworking as well as policies providing economic support. We find an association between belief polarization on the one hand and trust in the press, fake news, political polarization, and possibly also inequality on the other. These results indicate that belief polarization, by hindering the implementation of crisis response policies, may be one channel which could amplify the negative effects of large or unusual crises.
Subjects: 
Polarization
consumer survey
Covid-19
JEL: 
E23
E66
E71
I12
Persistent Identifier of the first edition: 
ISBN: 
978-952-323-416-1
Document Type: 
Working Paper

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