Disagreement on economic outlook influences growth regimes: ECB paper

Higher levels of disagreement between economic agents reduces the propensity to switch from high-growth to medium- or low-growth regime, according to a European Central Bank paper published on Tuesday.

Cristian Badarinza and Marco Buchmann, the paper's authors, examine whether changing levels of aggregate disagreement have the potential to render the economy more or less vulnerable to exogenous shocks.

The authors note that the dispersion of agents' beliefs about the expected course of the real