Ulrike Malmendier: Breaking the Wall to Inflation – Falling Walls Science Summit 2023
Inflation, especially when experienced at high or unpredictable rates, gives rise to several significant economic issues. Firstly, it erodes the purchasing power of consumers, leading to a decrease in the overall standard of living. Fixed-income earners, such as retirees living on pensions, are particularly vulnerable as the real value of their income diminishes. Secondly, inflation can disrupt long-term planning and investment for both individuals and businesses. Uncertainty about future prices can discourage spending and investment, slowing down economic growth. Ulrike Malmendier is a professor of economics and finance at the University of California, Berkeley as well as a member of the Council of Economic Experts whose work focuses on behavioral economics, corporate finance, and law and economics. At Falling Walls, Malmendier will explore a compelling analysis of the profound influence that personal experiences exert on our economic behaviors and future predictions. She investigates the ways in which the fear of inflation can become ingrained in our cognitive processes, shedding light on the neurological underpinnings of this phenomenon.