Assumptions about how people form expectations for the future shape the properties of any dynamic economic model. To make economic decisions in an uncertain env

At the core of the rational expectations revolution is the insight that economic policy does not operate independently of economic agents' knowledge of that pol

The standard theory of decision making under uncertainty advises the decision maker to form a statistical model linking outcomes to decisions and then to choose

These 21 readings describe the orgins and growth of the macroeconomic analysis known as "rational expectations". The readings trace the development of this appr