Fireside Chats: Communication and Consumers’ Expectations in the Great Depression

Mathieu Pedemonte

The Review of Economics and Statistics, 2024, vol. 106, issue 4, 997-1011

Abstract: This paper shows how policy announcements can be used to manage expectations. Using regional variation in radio exposure, I evaluate the impact of FDR’s 1935 Fireside Chat, in which he showcased the introduction of important social policies, establishing a new expansionary cycle of the New Deal. I document that cities with higher exposure to the announcement exhibited a significant increase in spending on durable goods. The estimated effect is consistent with changes in expectations in line with the policies announced. This paper shows the power of communication as a policy tool.

Date: 2024
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Working Paper: Fireside Chats: Communication and Consumers’ Expectations in the Great Depression (2020)
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