- Central banks may need to contend with lower levels of rational inattention
In the ECB’s own words, “the theory of rational inattention assumes that agents cannot process all available information,
but they can choose which exact pieces of information to attend to”. Well, I guess she’s saying it doesn’t help if you have someone looking over your shoulder. How’s life, Señor Powell?
This article was written by Justin Low at www.forexlive.com. Source