An emerging literature in macroeconomics has stressed how production networks facilitate the propagation of shocks and affect the aggregate performance of the economy (Carvalho 2010, Acemoglu et. al. 2011, Oberfield 2011). Yet there is no empirical evidence about the structure of large...

We first establish that policymakers on the Bank of England's Monetary Policy Committee choose lower interest rates with experience. We then reject increasing confidence in private information or learning about the structure of the macroeconomy as explanations for this shift. Instead, a model in...