How “left-digit bias” and the competition for attention affect inflation

High-inflation periods, such as the 2021-2023 inflation surge, pose a major challenge for European monetary policy. Marcel Garz and Benjamin Larin examine how sensational media coverage of the economy complicates the European Central Bank’s mission to achieve price stability. Since its inception in 1998, the European Central Bank (ECB) has been working to maintain price … Continued