interest rates becomes less effective in stimulating current economic activity. While the implication of such discounting for … optimal policy depends on its degree, we find that, under a wide range of plausible degrees of discounting, it is optimal for …

discounting, or myopia: they discount variables far into the future at higher rates than typically implied in the benchmark model … minimal estimated degrees of myopia. The results indicate that the empirical evidence for cognitive discounting may be …