The State of Short-term Expectation
The claim that Keynes makes a tacit assumption in Chapter 3 of The General Theory , that short-term expectations are fulfilled, is unwarranted and unnecessary. Kregel's seminal 1976 paper and its subsequent development by Chick and others have contributed to the general acceptance of this claim; these contributions are critically evaluated in the present paper. This critique clears the ground for a recognition that Keynes instead adopted the assumption of judicious foresight, which would now be called short-term rational expectations. That recognition in turn should encourage a reappraisal of Keynes's thought, by mainstream economists and others.
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Volume (Year): 25 (2013)
Issue (Month): 2 (April)
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- M. G. Hayes, 2013.
"The State of Short-term Expectation,"
Review of Political Economy,
Taylor & Francis Journals, vol. 25(2), pages 205-224, April.
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bla06018, Université Panthéon-Sorbonne (Paris 1).
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1993.16, School of Economics, La Trobe University.
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