Forward guidance only works if the public gets the message and acts upon it—and research suggests many people simply don’t.
The US and European central banks thought they could manage their economies by bringing their secretive plans for interest-rate regulation into the light. But they didn’t account for an unreceptive public.
Many Americans still exhibit a profound lack of awareness about inflation and the policies meant to guide it, according to research.
Having insight into the consumption habits of others can help calibrate and moderate your own habits.
A combination of crowdsourced information and peer pressure can help consumers moderate their consumption.