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June 28, 2003

Behavioral Economics

Neat NYT story on the field. In the current economic climate, mainstream economists are looking more and more to the behavioralists. I've even practiced a little amateur behavioral econ myself, namely my speculation that (even) lower rates won't help spur the economy beyond a certain point. What's my reasoning? Who thinks a 1% interest rate is a great time to borrow money that didn't think 1.25% was? Additionally, how do you explain all those people out there who still haven't re-fi'd but will only get around to doing it once rates start going up?

Posted by Chris at June 28, 2003 05:53 AM

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