Intervention (Hidden)
The information treatments are embedded in the survey, and each is presented as follows:
T1 Friedman
Please read the following statement by some economists about inflation:
You don’t earn interest on your cash at home and only little interest on money in your checking account.
But if goods and services become more expensive over time (inflation), your cash becomes less valuable.
Hence, lower inflation can be beneficial when you hold cash.
T2 ELB
Please read the following statement by some economists about inflation:
When prices increase over time (inflation), interest rates tend to be high.
But in times of economic crisis, lower interest rates are needed to the boost the economy.
Higher inflation, therefore, gives central banks more opportunities to lower interest rates and help the economy to recover.
T3 Firms
Please read the following statement by some economists about inflation:
In times of crisis, it is sometimes necessary for firms to reduce wages in order to keep people employed.
But if they cannot cut wages, they might fire employees instead.
Higher inflation reduces wages implicitly. Thus, firms are not forced to reduce wages explicitly or fire workers in times of crisis.
T4 Wages
Please read the following statement by some economists about inflation:
When prices increase over time (inflation), worker’s wages may not immediately adjust in proportion.
Inflation, therefore, affects the amount of goods and services that workers can buy with their wages.
By keeping inflation low, workers can buy a similar amount of goods and services over time.
T5 Assets
Please read the following statement by some economists about inflation:
When prices increase over time (inflation), the dollar value of your assets (such as real estate, retirement savings, stocks, bonds, and so on) may not immediately adjust in proportion.
Inflation, therefore, affects the amount of goods and services that you can buy with your assets.
By keeping inflation low, you can buy a similar amount of goods and services with your assets over time.
The vignettes, which follow the information treatments, appear as follows:
V1
Imagine that the future inflation rate in the US, in a typical year, is X percentage points higher [lower] than currently expected.
In this scenario, would you choose to hold more or less money (both in cash and in your checking or savings account)?
[5-point scale; "Much less" to "Much more"]
V2
Imagine that the future inflation rate in the US, in a typical year, is X percentage points higher [lower] than currently expected.
In this scenario, would you choose to hold more or less financial assets (such as retirement savings, stocks or bonds)?
[5-point scale; "Much less" to "Much more"]
V3
Imagine that the future inflation rate in the US, in a typical year, is X percentage points higher [lower] than currently expected.
In this scenario, would you negotiate your wage more or less often?
[5-point scale; "Much less" to "Much more"]
V4
Imagine that the future inflation rate in the US, in a typical year, is X percentage points higher [lower] than currently expected.
In this scenario, how much more or less likely is it that you would look for a new job regularly?
[5-point scale; "Much less" to "Much more"]
V5
Imagine that the future inflation rate in the US, in a typical year, is X percentage points higher [lower] than currently expected.
In this scenario, how much more or less likely to buy real estate?
[5-point scale; "Much less" to "Much more"]