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Title: Tell Me Something I Don't Already Know: Learning in Low‐ and High‐Inflation Settings
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.  more » « less
Award ID(s):
1919307
PAR ID:
10653155
Author(s) / Creator(s):
 ;  ;  ;  ;  ;  ;  ;  ;  ;  ;  ;  ;  
Publisher / Repository:
The Econometric Society
Date Published:
Journal Name:
Econometrica
Volume:
93
Issue:
1
ISSN:
0012-9682
Page Range / eLocation ID:
229 to 264
Format(s):
Medium: X
Sponsoring Org:
National Science Foundation
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