A Basic Model of the Effects of Economic News

The state of the economy is a key driver of consumer spending and perceptions about the overall direction of society. Yet a widening gap between economic fundamentals and news tone has emerged, with the former having a disproportionately negative impact on both household financial decisions and perceptions about the economy’s health. The reason for this disparity is not entirely clear, but it is possible that the growing negativity of economic news has been influenced by heightened political polarization and the increased consumption of ideologically biased cable news channels.

A Basic Model of the Effects of Economic News

In principle, any change in a key economic indicator should cause a shift in asset prices, with bond yields and exchange rates responding most strongly and stocks reacting less so. In reality, though, the magnitude and persistence of the response vary widely. This article explores some of the reasons why.

One major factor is that survey data may capture market expectations with errors, with leads ranging from a few days to a week or more. Another is that many indicators are released with a lag, and the markets’ anticipation of an announcement often erodes during this time. In addition, the aggregation of information in news releases may distort the underlying signal. The authors find that only a small number of announcements—the nonfarm payroll numbers, the GDP advance release, and a private sector manufacturing report—generate price responses that are economically significant and measurably persistent.

How to Write Good Business News

Business news is a genre of journalism that covers economic trends, stock market fluctuations, and corporate scandals. It also reports on government policies and regulatory changes that impact businesses. Business news articles can also cover topics like supply chain transparency, ethical business practices, and financial literacy.

Stakeholders rely on timely business news to stay informed and make decisions about their investments, careers, and personal finances. In addition, business news articles serve as a historical record that can be referenced in research and academic papers.

How to Write Good Business News

Writing business news articles requires a unique perspective and specialized vocabulary. The best way to create engaging business content is to focus on a specific aspect of the economy and provide context and background information for the reader. This approach can help you avoid using buzzwords and jargon that may confuse or bore your audience.

For example, when writing about a company’s earnings report, explain the implications of each number. This helps readers understand the magnitude of a particular change or trend. It is also important to highlight any factors that may influence future results. For example, a change in consumer spending or interest rates could affect the profitability of a company’s products.

If you are a business writer, share your articles in relevant places and channels to increase your reach. Forums like Quora and Reddit (in relevant subreddits) are great places to post your articles, as are industry-specific websites. You can also pitch your stories to larger publications and syndicate them to expand your reach.

Crisis News Reports

Crisis news reports cover unforeseen events that threaten individuals, institutions, or even entire nations. Whether due to natural disasters, human-caused disasters, or societal shifts, effective and accurate crisis reporting plays a critical role in shaping public perceptions and responses to global crises.

Informed Crisis Reporting

Misinformation during a crisis can spark panic and hinder relief efforts. Journalists must be able to distinguish facts from culturally-ingrained myths and communicate with empathy, ensuring that all audiences receive accurate information.

Company Reactions

A company can respond to a crisis through a press release that addresses the event, key details about how it occurred, and reassurances on steps being taken to resolve or prevent future occurrences. This communication can help maintain customer trust and halt negative media coverage.

Keeping It Safe

Journalists who cover crisis and conflict zones face significant risks to their safety. By adhering to ethical standards – such as avoiding sensationalism – and by maintaining an active communication network with home base, journalists can safely deliver important stories from remote locations without jeopardizing their own safety or that of their sources.

Longform visual storytelling can capture the hearts and minds of readers, bringing them face to face with the people most affected by a crisis. Stories like Redd Barna’s heart-wrenching account of women and children fleeing conflict in Democratic Republic of Congo offer a personal connection that drives compassion and action. For interactive comparisons of data, Shorthand’s Scrollmation and Reveal features can be used to create engaging visualizations that allow readers to view change over time.