Rüdiger Pohl Book order

Cognitive Illusions investigates a wide range of fascinating psychological effects in the way we think, judge and remember in our everyday lives. At the beginning of each chapter, leading researchers in the field introduce the background to phenomena such as illusions of control, overconfidence and hindsight bias. This is followed by an explanation of the experimental context in which these illusions can be investigated and a theoretical discussion drawing conclusions about the wider implications of these fallacy and bias effects. Written with researchers and instructors in mind, this tightly edited, reader-friendly text provides both an overview of research in the area and many lively pedagogic features such as chapter summaries, further reading lists and suggestions for classroom demonstrations.

The introduction of the European Monetary Union has several implications on the appropriate structure of macroeconometric models. First, institutional changes are important in order to evaluate the outcome of different policies on production and employment. Monetary policy is no longer a valid tool for the national economic authorities. Further, wage bargaining becomes more important to employment. In the long run, inflation will be fixed at the aera-wide level, and so, changes in nominal wages will lead to changes in real wades at the national level as well. In the conference volume the consequences of the new environment for the German economy are discussed. Special topics investigate the formation of model consistent expectations, production and foreign trade behavior, wage and inflation, and reaction functions for the central bank.