Perceived inflation and interest rates
- Type:Master Thesis
In recent years, public opinion in Germany is concerned with low interest rates for saving accounts. From an economic perspective, what matters though is the relationship between interest rates and inflation. For example, in an environment where interest rates are positive but inflation even exceeds these rates, net saving rates are negative. The goal of this master thesis is to experimentally test in how far consumers understand this link and are able to act on this information.