Carla Tardi is a technical editor and digital content producer with 25+ years of experience at top-tier investment banks and money-management firms. The rational expectations theory is a concept and ...

Rational expectations is a basic economic theory that originated with a paper written in 1972 by future Nobel Prize-winning economist Robert Lucas. The theory of rational expectations has been ...

Purchasers of Black-Market Human Organs Often Complicit in Murder Audio By Carbonatix Writing about the recently departed Robert Lucas, John Cochrane gives a nice clear explanation of one of his ...

Green, Jerry R., and Seppo Honkapohja. "Variance-Minimizing Monetary Policies with Lagged Price Adjustment and Rational Expectations." European Economic Review 20, nos. 1-3 (January 1983): 123–141.

This paper examines the robustness characteristics of optimal control policies derived under the assumption of rational expectations to alternative models of expectations. We assume that agents have ...

Asymmetries play an important role in many macroeconomic models. We show that assumptions on household and firm expectations play a key role in determining the effects of these asymmetries on ...

Consumer demand is a driving force of economic growth, accounting for about two-thirds of the US economy. So when policymakers want to determine how a particular fiscal or monetary policy will land, ...