We suggest that overconfidence among policymakers explains why formal decision power over monetary policy is given to … committees, while much of the real power to set policy remains with central bank chairmen. Overconfidence implies that the … chairman underweights advice from his staff, increasing policy risk if he alone decides. A committee with decision power …

allocation and incentive functions of markets should exercise their power, and where this may not be desirable. In a seminal and …

social norms of moral behavior for limiting the power of the replacement excuse, our paper informs the long-standing debate …