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A·dap·tive ex·pec·ta·tions hy·poth·e·sis

/əˈdaptiv ˌekˌspekˈtāSHənz/

noun
- 1. a hypothesis that supposes that expectations of future values of a variable can be based primarily on its values in the recent past.
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Adaptive expectations
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In economics, adaptive expectations is a hypothesized process by which people form their expectations about what will happen in the future based on what has happened in the past. For example, if people want to create an expectation of the inflation rate in the future, they can refer to past inflation rates to infer some consistencies and could derive a more accurate expectation the more years they... Wikipedia
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