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Intermittent attention, poor memory shape public perceptions of inflation
Do you know your country’s current inflation rate? What do you think it will be in the future? And how do you, personally, try to plan your finances accordingly? Those are important questions for economists and policymakers, because central bankers generally assess future expectations of inflation when setting interest rates. Yet as a new study co-authored by an MIT economist reveals, people have
Long-run money demand redux
VoxEU Column Financial Regulation and Banking Macroeconomic policy Monetary Policy Most economists and central bankers no longer consider money supply measures to be useful for conducting monetary policy. One reason is the alleged instability of the relationship between monetary aggregates. This column uses data from 32 countries and spanning up to 100 years to argue that the long-run demand for m
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