Attention-Dependent Monetary Transmission to Household Beliefs

Jaemin Jeong, Eunseong Ma and Choongryul Yang
Additional contact information
Jaemin Jeong: Duke University
Choongryul Yang: Federal Reserve Board

No 2025rwp-261, Working papers from Yonsei University, Yonsei Economics Research Institute

Abstract: When do households listen to the Fed? We show the answer lies in a simple but powerful force: household attention to macroeconomic conditions. We develop a model where attention acts as a crucial gatekeeper for the pass-through of policy news to beliefs, and confirm its predictions using household survey data. We find that belief revisions to monetary policy surprises are concentrated among attentive individuals—particularly those with high financial stakes—and this effect strengthens dramatically during uncertain times. This implies the expectations channel is most potent when it matters most, suggesting policymakers should account for the time-varying and heterogeneous nature of public attention.

Keywords: New energy model city construction program; Cost-effective; Collaborative emission abatement; Digital economy; China (search for similar items in EconPapers)
JEL-codes: D83 D84 E31 E52 (search for similar items in EconPapers)
Pages: 55pages
Date: 2025-09
References: Add references at CitEc
Citations:

Downloads: (external link)
http://121.254.254.220/repec/yon/wpaper/2025rwp-261.pdf (application/pdf)

Related works:
Working Paper: Attention-Dependent Monetary Transmission to Household Beliefs (2025)
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:yon:wpaper:2025rwp-261

Access Statistics for this paper

More papers in Working papers from Yonsei University, Yonsei Economics Research Institute Contact information at EDIRC.
Bibliographic data for series maintained by YERI ().