This paper empirically investigates individuals' attention allocation behavior and its economic implications on expectation formation and consumption choice. We measure attention with data from the Michigan Survey of Consumers (MSC), in which respondents were asked to report what economic news...

Ever since the European Central Bank presented its monetary policy strategy on the basis of two pillars "economic" and "monetary" analysis with the latter being used as a cross-check of the first it has been criticized for giving too much importance to monetary aggregates. Opponents argue these...