Ep24 “When Institutions Cry Wolf” with Jay Bhattacharya
All Else Equal: Making Better Decisions
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The Importance of Long-Term Credibility
In many ways I think that the credibility of the government should be viewed as a public good in and of itself. You need to use that credibility sparingly and you don't want to waste it particularly. There are situations where there is this appealing short-term benefit that people then sacrifice because the long-term cost is the loss of credibility. We can never ensure that this works for everybody. The switch doesn't really exist.
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