Inflation and attention thresholds

Oleg Korenok, David Munro and Jiayi Chen

No 1175, GLO Discussion Paper Series from Global Labor Organization (GLO)

Abstract: One of the dangers of high inflation is that it can cause firms and households to pay close attention to it. This internalization of inflation can lead to an accelerationist regime, making inflation harder to control. We empirically assess the relationship between attention and the level of inflation for 37 countries. Our measures of attention are constructed either from internet search behavior or the popularity of inflation mentions on Twitter. We find evidence that attention thresholds do exist for the majority of countries in our sample. We also find interesting variability across countries.

Keywords: inflation; attention; threshold (search for similar items in EconPapers)
JEL-codes: E31 E52 E70 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-mon
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Citations: View citations in EconPapers (5)

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Related works:
Working Paper: Inflation and Attention Thresholds (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:glodps:1175

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