Using randomized control trials (RCT) applied over time in different countries, we study how the economic environment affects how agents learn from new information. We show that as inflation has risen in developed economies, both households and firms have become more attentive and informed about...

Should Reserve Bank of Fiji (RBF) use rate of interest to control private consumption expenditure in Fiji? This paper investigates whether rate of interest is an appropriate monetary policy instrument to reduce consumption in Fiji. Results indicate that interest rate has no effect on private...

We assess whether central banks may use inflation expectations as a policy tool for stabilization purposes. We review recent work on how expectations of agents are formed and how they affect their economic decisions. Empirical evidence suggests that inflation expectations of households and firms...