ECB paper uses RCT data on inflation expectations

Consumers’ level of attention is determined by economic environment, research finds

European Central Bank
The European Central Bank

A working paper published by the European Central Bank uses randomised control trials, or RCTs, to examine how information on inflation affects consumers’ expectations.

In Tell me something I don’t already know: learning in low and high inflation settings, Michael Weber et al look at data from RCTs conducted over several years in different countries. Some countries had consistently high or low inflation, like Uruguay and New Zealand respectively, while others, such as Italy, were much more

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