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We consider boundedly rational agents who do not plan over the infinite future but make trading plans at a finite, arbitrary horizon. We investigate the role of that horizon in the price dynamics of an asset in a Lucas tree model. We then design a laboratory experiment to test our theoretical...
Persistent link: https://www.econbiz.de/10012037335
heterogeneous expectations that may durably lose their anchorage to the central bank (CB)'s target and coordinate on particularly …
Persistent link: https://www.econbiz.de/10012154130