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

Bernardo Candia, Olivier Coibion, Serafin Frache, Dmitris Georgarakos, Yuriy Gorodnichenko, Geoff Kenny, Saten Kumar, Rodrigo Lluberas, Brent Meyer, Tiziano Ropele and Michael Weber

No 2023-8, FRB Atlanta Working Paper from Federal Reserve Bank of Atlanta

Abstract: 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.

Keywords: inattention; RCTs; inflation expectation (search for similar items in EconPapers)
JEL-codes: E3 E4 E5 (search for similar items in EconPapers)
Pages: 56
Date: 2023-07-31
New Economics Papers: this item is included in nep-ban and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Published in 2023

Downloads: (external link)
https://www.atlantafed.org/-/media/documents/resea ... flation-settings.pdf (application/pdf)

Related works:
Journal Article: Tell Me Something I Don't Already Know: Learning in Low‐ and High‐Inflation Settings (2025)
Working Paper: Tell me something I don’t already know: learning in low and high-inflation settings (2024)
Working Paper: Tell Me Something I don't Already Know: Learning in Low and High-inflation Settings (2023)
Working Paper: Tell Me Something I Don't Already Know: Learning in Low and High-Inflation Settings (2023)
Working Paper: Tell Me Something I Don’t Already Know: Learning in Low and High-Inflation Settings (2023)
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:fip:fedawp:96613

Ordering information: This working paper can be ordered from

DOI: 10.29338/wp2023-08

Access Statistics for this paper

More papers in FRB Atlanta Working Paper from Federal Reserve Bank of Atlanta Contact information at EDIRC.
Bibliographic data for series maintained by Rob Sarwark ().