Economics: Jeffrey Frankel joins Noah Smith and me on Team “It’s Mostly Lags”, and joins us in expecting people to become much more sanguine about the economy as information works its way through the system:

Jeffrey Frankel: Explaining Americans’ Pessimism About a Strong Economy: ‘At least six reasons have been advanced…. Positive economic indicators are wrong…. Negative data.sca.isr.umich.edu/fetchdoc.php reflect Republican partisanship…. News media’s tendency to focus on the frbsf.org/research-and-insights/data-an……. Perceptions lag behind reality…. The problem is not the rate of price rises, but the price level…. Inflation is hurting lower-income households…. While there need not be one single explanation for negative perceptions of the economy, the lag hypothesis seems most persuasive… <project-syndicate.org/commentary/explai…>