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Optimal term length for an overconfident ...
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Document type :
Compte-rendu et recension critique d'ouvrage
DOI :
10.1142/s0217590816500107
Title :
Optimal term length for an overconfident central banker
Author(s) :
Farvaque, Etienne [Auteur] refId
Lille économie management - UMR 9221 [LEM]
Matsueda, Norimichi [Auteur]
Journal title :
The Singapore Economic Review
Pages :
179--192
Publisher :
World Scientific Publishing Co Pte Ltd
Publication date :
2017-03
ISSN :
0217-5908
English keyword(s) :
Central banker
overconfidence
legal mandate
optimal term length
HAL domain(s) :
Sciences de l'Homme et Société/Economies et finances
English abstract : [en]
This paper discusses the implications of overconfidence when it affects a monetary policy maker. We consider two forms of overconfidence: the illusion of precision and the illusion of control. Incorporating them into a ...
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This paper discusses the implications of overconfidence when it affects a monetary policy maker. We consider two forms of overconfidence: the illusion of precision and the illusion of control. Incorporating them into a standard New Keynesian framework, we consider the optimal term length of a central banker and examine how it depends on the types and degrees of overconfidence. In particular, we show that the legal mandate should always be lengthened when these two types of biases increase by the same percentage magnitude.Show less >
Language :
Anglais
Popular science :
Non
Collections :
  • Lille Économie Management (LEM) - UMR 9221
Source :
Harvested from HAL
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