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It has been suggested that interest-rate smoothing may be partly explained by an omitted variable that relates to conditions in financial markets. We propose an alternative interpretation that suggests that it relates to measurement errors in the output gap.
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Costs and benefits in the distant future, such as those associated with global warming, long-lived infrastructure, hazardous and radioactive waste, and biodiversity often have little value today when measured with conventional discount rates. We demonstrate that when the future path of this...
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Costs and benefits in the distant future, such as those associated with global warming, long-lived infrastructure, hazardous and radioactive waste, and biodiversity often have little value today when measured with conventional discount rates. We demonstrate that when the future path of this...
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Status quo bias is a systematic cognitive error which makes it difficult for individuals to make decisions … status quo bias. We evaluated interest rate forecast series from twelve industrial nations. This revealed that, on average … significantly underestimated. -- behavioral finance ; status quo bias , bond market analysts ; interest rate forecasts …
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