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The accumulated commitments that create institutional legitimacy: foundational narratives (why we exist), precedent chains (our past decisions were correct), identity commitments (who we are), and authority structures (who decides). These investments make learning risky—the more invested, the more dangerous evidence becomes.
A central bank's authority investment in inflation-targeting creates resistance to evidence that the framework needs revision. Admitting error threatens decades of policy justification and current authority.
ILA-EBD Section 2.2