Frames and Complexity: Evidence from the Federal Reserve

This essay investigates the role of cognitive frames in decision makers’ ability to perceive complexity. By focusing decision makers’ attention on a few features of the environment, a cognitive frame can push them to perceive interdependencies not visible without that focus. However, interdependencies amongst the screened-out features of the environment are ignored. A single frame therefore helps decision makers to perceive low-levels of complexity but hinders the attainment of higher-levels of complexity. In highly complex environments, therefore, decision makers should attend the problem at hand through multiple frames. This essay describes three decision making processes through which complexity is perceived: agenda-driven and frame-driven decision making to attend low-level complexity, and frame combining to attend high-level complexity. The study applies qualitative research methods on the meeting transcripts of a high-level decision making committee, the Federal Open Market Committee (FOMC). The committee is responsible for the monetary policy of the Federal Reserve.