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Rhetoric and doctrines of policy over- and underreactions in times of crisis

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This article distinguishes between disproportionate policy response by error (bounded rationality) and disproportionate response by choice, and advances a further distinction of such choices between two disproportionate policy options, namely, rhetoric and doctrine. Probing the 'plausibility' of these terms, the article presents pertinent illustrations drawn from the military, financial and environmental domains in the US, Britain, Israel, Australia, Singapore and the European Union. These illustrations show that, during pre-crisis and in-crisis periods, both options can be purposefully designed to signal policymakers' preference and/or to deliver the disproportionate responses in pursuit of policy goals.
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Keywords: CRISIS; DISPROPORTIONATE POLICY RESPONSE; OVERREACTION; POLICY DESIGN; UNDERREACTION

Document Type: Research Article

Affiliations: Email: [email protected]

Publication date: 01 January 2018

This article was made available online on 09 February 2017 as a Fast Track article with title: "Rhetoric and doctrines of policy over- and underreactions in times of crisis".

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