Models of bounded rationality and the credit environment

I've had an article published today in VoxEU:
Models of bounded rationality and the credit environment: Responses to the recession should not be based on unrealistic expectations of rational behaviour. We now know enough about real, flawed human psychology to be able to take some account of it in policy setting.
Mark Thoma has linked to it and there are some interesting responses in the comments to his posting.

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