EconPapers    
Economics at your fingertips  
 

Tell Me Something I Don't Already Know: Learning in Low‐ and High‐Inflation Settings

Michael Weber, Bernardo Candia, Hassan Afrouzi, Tiziano Ropele, Rodrigo Lluberas, Serafin Frache, Brent Meyer, Saten Kumar, Yuriy Gorodnichenko, Dimitris Georgarakos, Olivier Coibion, Geoff Kenny and Jorge Ponce

Econometrica, 2025, vol. 93, issue 1, 229-264

Abstract: Using randomized control trials (RCTs) applied over time in different countries, we study whether the economic environment affects how agents learn from new information. We show that as inflation rose in advanced economies, both households and firms became more attentive and informed about publicly available news about inflation, leading them to respond less to exogenously provided information about inflation and monetary policy. 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.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.3982/ECTA22764

Related works:
Working Paper: Tell me something I don’t already know: learning in low and high-inflation settings (2024) Downloads
Working Paper: Tell Me Something I don't Already Know: Learning in Low and High-inflation Settings (2023) Downloads
Working Paper: Tell Me Something I Don't Already Know: Learning in Low- and High-Inflation Settings (2023) Downloads
Working Paper: Tell Me Something I Don't Already Know: Learning in Low and High-Inflation Settings (2023) Downloads
Working Paper: Tell Me Something I Don’t Already Know: Learning in Low and High-Inflation Settings (2023) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:emetrp:v:93:y:2025:i:1:p:229-264

Ordering information: This journal article can be ordered from
https://www.economet ... ordering-back-issues

Access Statistics for this article

Econometrica is currently edited by Guido W. Imbens

More articles in Econometrica from Econometric Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2025-03-30
Handle: RePEc:wly:emetrp:v:93:y:2025:i:1:p:229-264