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Tariff Threats, Macroeconomic Expectations, and Policy Communication Strategies: Experiments Based on a Multi-Agent System

Author

Listed:
  • Jianhao Lin
  • Lexuan Sun
  • Yixin Yan

Abstract

Tariff threats can move household beliefs before policy is enacted, yet their rapidly changing language is difficult to study with conventional surveys. We build a multi-agent system that turns 300 households from the Michigan Surveys of Consumers into persistent large-language-model agents exposed to social-media information over several simulated months. Calibrated agents reproduce some distributional and demographic patterns in human survey data collected after the announcement of Liberation Day tariffs. Simulated experiments indicate that immediacy, rate salience, semantic progression, message complexity, narrative, and sender identity jointly shape inflation and unemployment expectations and their dispersion. Open-ended responses trace these effects to attention, ambiguity, credibility, and causal narratives. A second experiment finds that central-bank explanations can coordinate beliefs, although their effects on average expectations depend on message content. The framework supports disciplined exploration of policy communication, subject to human validation rather than as a substitute for it.

Suggested Citation

  • Jianhao Lin & Lexuan Sun & Yixin Yan, 2026. "Tariff Threats, Macroeconomic Expectations, and Policy Communication Strategies: Experiments Based on a Multi-Agent System," Papers 2608.30522, arXiv.org.
  • Handle: RePEc:arx:papers:2608.30522
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