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It is common to analyze the effects of alternative monetary policy commitments under the assumption of fully model-consistent expectations. This implicitly assumes unrealistic cognitive abilities on the part of economic decision makers. The relevant question, however, is not whether the...
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. Standard theory would want judges to rationally deal with the limitations of the evidence. We posit that this is not only …
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improve prescriptions for coping with uncertainties in view of evidence of substantive success or failure. Decision theory …
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