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Abstract We examine a century of radial velocity, visual magnitude, and astrometric observations of the nearest red supergiant, Betelgeuse, in order to reexamine the century-old assertion that Betelgeuse might be a spectroscopic binary. These data reveal Betelgeuse varying stochastically over years and decades due to its boiling, convective envelope, periodically with a 5.78 yr long secondary period (LSP), and quasiperiodically from pulsations with periods of several hundred days. We show that the LSP is consistent between astrometric and radial velocity data sets, and argue that it indicates a low-mass companion to Betelgeuse, less than a solar mass, orbiting in a 2110 day period at a separation of just over twice Betelgeuse’s radius. The companion star would be nearly 20 times less massive and a million times fainter than Betelgeuse, with similar effective temperature, effectively hiding it in plain sight near one of the best-studied stars in the night sky. The astrometric data favor an edge-on binary with orbital plane aligned with Betelgeuse’s measured spin axis. Tidal spin–orbit interaction drains angular momentum from the orbit and spins up Betelgeuse, explaining the spin–orbit alignment and Betelgeuse’s anomalously rapid spin. In the future, the orbit will decay until the companion is swallowed by Betelgeuse in the next 10,000 yr. 

We use randomized treatments that provide different types of information about the first and/or second moments of future economic growth to generate exogenous changes in the perceived macroeconomic uncertainty of treated households. The effects on their spending decisions relative to an untreated control group are measured in follow-up surveys. Our results indicate that, after taking into account first moments, higher macroeconomic uncertainty induces households to significantly and persistently reduce their total monthly spending in subsequent months. Changes in spending are broad based across spending categories and apply to larger durable good purchases as well. (JEL D12, D81, D84, E21, E23, G51) 

The seminal work of Jonung (1981) showed that households' perceptions of inflation are the strongest predictor of households' inflation expectations. This fact has been a key ingredient for testing and developing theoretical models of how economic agents form expectations (e.g., the famous Lucas (1972) island model). However, little is known about whether perceptions play a similar role for firms. Using a new survey of American CEOs, we document that inflation perceptions shape the inflation expectations of firms just as Jonung (1981) found for households. These results suggest that information rigidities apply not only for households but also for CEOs. 

Abstract We compare causal effects of forward guidance about future interest rates on households’ expectations of inflation and nominal mortgage rates to the effects of communication about inflation in a randomized control trial using more than 20,000 U.S. consumers in the Nielsen Homescan Panel. We elicit consumers’ expectations, and then provide 22 different forms of information regarding past, current, and/or future interest rates and inflation. Information treatments about current or future interest rates all have similar and offsetting effects on interest rate and inflation expectations, yielding limited pass-through into perceived real rates. Information about mortgage rates has much more powerful effects on interest rate perceptions, with no offsetting effects on inflation expectations, thereby delivering much larger changes in perceived real rates. Revisions in perceived real rates causally lead to changes in the ex-post purchases of durable goods by households.