Rational inattention and information provision experiments
Surveys with information provision experiments have become popular in economics. This column introduces an information provision experiment in a model of rational inattention – where
Dollar rallies as US shutdown drags on, weighing on confidence
The dollar index, which measures the greenback’s strength against a basket of six currencies, rose 0.3% to as much as 98.91 The U.S. dollar rose
Interest rate and deposit run risk: New evidence from euro area banks in the 2022-2023 tightening cycle
Rising interest rates expose the interaction between hidden losses on long-duration assets and flighty uninsured deposits. This column uses confidential data for 139 euro area
Strong Japan GDP lifts yen, dollar steady as rate cut fervour cools slightly
Dollar on course to end week flat against EUR; lower against JPY, GBP The dollar was largely steady against the euro and British pound on
Interlocking directorates and competition in banking
The presence of directors on the boards of competing firms (‘interlocking directorates’) raises concerns about collusion. This column studies the Italian corporate loan market and
Households’ subjective expectations: Disagreement, common drivers, and reaction to aggregate shocks
Understanding how households interpret macroeconomic policy is vital to the effectiveness of central banks. This column demonstrates that the reactions of individual households frequently contradict
