Haaparanta, Pertti; Pirttilä, Jukka - Siirtymätalouksien tutkimuslaitos, Suomen Pankki - 2005
We examine the choice of economic reforms when policymakers have present-biased preferences and can choose to discard information (maintain confidence) to mitigate distortions from excess discounting. The decisions of policymakers and firms are shown to be interdependent. Confident policymakers...