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Explore the critical intersection where finite depth of reasoning meets monetary policy, examining how cognitive limits and bounded rationality profoundly influence central banking strategies and macroeconomic stability. This analysis delves into the challenges and implications for economic decision-making in a complex world.

Explore the fascinating concepts of bounded rationality, revealing how human decision making operates within cognitive limits. Discover the adaptive toolbox, a framework proposing that individuals rely on simple, effective heuristics – often called fast and frugal – to navigate complex environments, offering powerful insights into real-world decision processes and cognitive psychology.