Arbeitspapier

Tell me something I don't already know: Learning in low- and high-inflation settings

Using randomized control trials (RCT) applied over time in different countries, we study how the economic environment affects how agents learn from new information. We show that as inflation has risen in developed economies, both households and firms have become more attentive and informed about inflation, leading them to respond less to exogenously provided information about inflation and monetary policy. This observation holds for both firms and households. We also study the effects of RCTs in countries where inflation has been consistently high (Uruguay) and low (New Zealand) as well as what happens when the same agents are repeatedly provided information in both low- and high-inflation environments (Italy). Our results broadly support models in which inattention is an endogenous outcome that depends on the economic environment.

Language
Englisch

Bibliographic citation
Series: Working Paper ; No. 2023-8

Classification
Wirtschaft
Subject
inattention
RCTs
inflation expectation
Inflationserwartung
Wirtschaftsinformation
Geldpolitik
Rationale Erwartung
Randomisierte kontrollierte Studie

Event
Geistige Schöpfung
(who)
Weber, Michael
Candia, Bernardo
Ropele, Tiziano
Lluberas, Rodrigo
Frache, Serafin
Meyer, Brent
Kumar, Saten
Gorodnichenko, Yuriy
Georgarakos, Dimitris
Coibion, Olivier
Kenny, Geoff
Event
Veröffentlichung
(who)
Federal Reserve Bank of Atlanta
(where)
Atlanta, GA
(when)
2023

DOI
doi:10.29338/wp2023-08
Handle
Last update
10.03.2025, 11:45 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Arbeitspapier

Associated

  • Weber, Michael
  • Candia, Bernardo
  • Ropele, Tiziano
  • Lluberas, Rodrigo
  • Frache, Serafin
  • Meyer, Brent
  • Kumar, Saten
  • Gorodnichenko, Yuriy
  • Georgarakos, Dimitris
  • Coibion, Olivier
  • Kenny, Geoff
  • Federal Reserve Bank of Atlanta

Time of origin

  • 2023

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