Evolutionary, neuroscientific, and cognitive perspectives in psychology have converged on the idea that some attitudes are moralized—a distinctive characteristic. Moralized attitudes reorient behavior from maximizing gains to adhering to rules. Here, I examine a political consequence of this tendency. In four studies drawing data from a variety of sources, I measure attitude moralization and ex...

Globalization can be viewed as the integration of inputs and outputs into global markets, sharing of information and knowledge, and promulgation of rules governing such integration. World Trade Organization, International Monetary Fund, and World Bank play a vital role in the process of economic globalization. The positive and negative affects of globalization and the groups that resist and sup...

Since Taylor (1993), monetary policy is usually modeled through continuous contingent rules. In this paper, we propose an original alternative discrete modeling of the monetary policy reaction function. While this modeling covers a wide range of problems, we provide a simple application to the particularly topical issue of the Zero Lower Bound. First, we give exact determinacy conditions for a ...

I examine a model in which two competing groups offer different allocation rules that may depend on the network of connections among the individuals that make up each group. I assume the existence of a single divisible good, such as a monetary prize, to be divided by each group. The probability of winning the prize will depend on the group sizes, but I examine a more general contest function as...

Expectations about the future are central for determination of current macroeconomic outcomes and the formulation of monetary policy. Recent literature has explored ways for supplementing the benchmark of rational expectations with explicit models of expectations formation that rely on econometric learning. Some apparently natural policy rules turn out to imply expectational instability of priv...

We examine the role and nature of external influences (US as well as German) and changing institutional constraints upon UK monetary policy by estimating Taylor-type reaction functions for three subperiods: 1985-90 (pre-ERM), 1992-97 (post-ERM) and 1997-2000 (MPC). We identify and contrast ‘domestic’ and ‘international’ models of the reaction function, and show that while the international mode...

These notes try to clarify some discussions on the formulation of individual intertemporal behavior under adaptive learning in representative agent models. First, we discuss two suggested approaches and related issues in the context of a simple consumption-saving model. Second, we show that the analysis of learning in the NewKeynesian monetary policy model based on " Euler equations " provides ...

We consider optimal monetary stabilization policy in a New Keynesian model with explicit microfoundations, when the central bank recognizes that private-sector expectations need not be precisely model-consistent, and wishes to choose a policy that will be as good as possible in the case of any beliefs close enough to model-consistency. We show how to characterize robustly optimal policy without...

A currency area can be a self-validating optimal policy regime, even when monetary unification does not foster real economic integration and intra-industry trade. In our model firms choose the degree of exchange rate pass-through onto export prices accounting for expected monetary policies, and monetary authorities choose optimal policy rules taking firms’ pass-through as given. We show that th...

Recent research has explored how minor changes in expectation formation can change the stability properties of a model (Duffy and Xiao 2007, Evans and Honkapohja 2009). This paper builds on this research by examining an economy subject to a variety of monetary policy rules under an endogenous learning algorithm proposed by Marcet and Nicolini (2003). The results indicate that operational versio...