This article investigates the relation between misremembering and source ju
dgments in both the misleading information paradigm and the false memory pa
radigm. A computational model, CHARM (Composite Holographic Associative Rec
all Model), is used to simulate source monitoring in both paradigms. Despit
e the fact that CHARM. stores memories in a composite memory trace, it is s
hown that the model can account for source judgements, and can explain the
discrepancy between the source judgement and the recognition data in the mi
sleading information paradigm. It also can account for the basic phenomena
of the false memory paradigm, wherein thematically related items induce a m
emory for a nonpresented but prototypical critical item. In two experiments
linking these two research lines, we presented the critical item in a diff
erent list from that used to induce the false memory effect. Although the m
odel predicted that the presentation of the critical item should increase t
he false memory effect, its presentation inhibited false memories instead-b
ut only with particular word lists and in certain treatment combinations. I
t seems likely that the presence of the critical item in an alternate list
allowed people to use an exclusionary rule to inhibit the false memories. S
uch a rule would be straightforward to implement in CHARM, and could allow
the model to account for this false memory suppression effect.