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Rational expectations and why they matter

Author

Listed:
  • Kakkar, Shrey

Abstract

This article discusses existing behavioral economics theory, focused on Rational Expectations. Macroeconomic and market consequences are considered, especially monetary policy on inflation.

Suggested Citation

  • Kakkar, Shrey, 2021. "Rational expectations and why they matter," MPRA Paper 110210, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:110210
    as

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    File URL: https://mpra.ub.uni-muenchen.de/110210/1/MPRA_paper_110210.pdf
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    References listed on IDEAS

    as
    1. Fama, Eugene F, 1970. "Efficient Capital Markets: A Review of Theory and Empirical Work," Journal of Finance, American Finance Association, vol. 25(2), pages 383-417, May.
    2. Milton Friedman, 1957. "The Permanent Income Hypothesis," NBER Chapters, in: A Theory of the Consumption Function, pages 20-37, National Bureau of Economic Research, Inc.
    3. Kydland, Finn E & Prescott, Edward C, 1977. "Rules Rather Than Discretion: The Inconsistency of Optimal Plans," Journal of Political Economy, University of Chicago Press, vol. 85(3), pages 473-491, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Rational Expectations; Expectations; Behavioral Economics;
    All these keywords.

    JEL classification:

    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General

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