We pay human subjects to be the policy maker and the public in an expectational Phillips curve model. Policy makers often have ways to achieve the time-inconsistent optimal inflation rate, at least for a while. But backsliding toward the sub-optimal Nash (time consistent) inflation rate also occurs.Although reputational macroeconomics provides no support for the `just do it' phrase as a piece of policy advice , the range of outcomes predicted by that theory is big enough to rationalize `just do it' behavior. The large set of outcomes motivated us to put human subjects inside a Kydland-Prescott environment.
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