This article examines whether macroeconomic policy preferences are egocentric and explores their basis in individual-level factors, sectors, or firms. It argues that contextual information functions as a precondition for the emergence of egocentric monetary policy preferences.
🔍 Data & Methods
Evidence from three original American surveys using informative vignettes demonstrates how monetary policy preferences exhibit firm-based egocentrism: Individuals whose employer engages heavily in overseas markets show lesser preference for domestic monetary autonomy. A survey experiment further reveals that this relationship strengthens with more contextually informative vignettes — a detailed description of overseas business activity produces a stronger link to reduced preference against domestic monetary autonomy.
💡 Key Findings
• Monetary policy preferences are influenced by contextual information about one's work environment
• Indirect exposure (through employer) affects attitudes toward international vs. domestic monetary goals
• The relationship between overseas economic ties and policy preferences depends on the informational context
| When Are Monetary Policy Preferences Egocentric? Evidence from American Surveys and an Experiment was authored by David H. Bearce and Kim-Lee Tuxhorn. It was published by Wiley in AJPS in 2017. |
