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  1. Rational expectations - Wikipedia

    en.wikipedia.org/wiki/Rational_expectations

    Rational expectations theory defines this kind of expectations as being the best guess of the future (the optimal forecast) that uses all available information. Thus, it is assumed that outcomes that are being forecast do not differ systematically from the market equilibrium results.

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      Rational expectations theory defines this kind of...

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      Rational expectations theories were developed in response to...

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      Rational expectations are expected values in the...

  2. In economics, "rational expectations" are model-consistent expectations, in that agents inside the model are assumed to "know the model" and on average take the model's predictions as valid. Rational expectations ensure internal consistency in models involving uncertainty. To obtain consistency within a model, the predictions of future values of economically relevant variables from the model ...

  3. Talk:Rational expectations - Wikipedia

    en.wikipedia.org/wiki/Talk:Rational_expectations

    rational expectations is a hypothesis or modeling technique, not a theory. It is not even a model, it is an assumption used to derive the expectations term of a model, and so can be (and has been) applied to many different models.

  4. Inflation - Wikipedia

    en.wikipedia.org/wiki/Inflation

    Rational expectations theory holds that economic actors look rationally into the future when trying to maximize their well-being, and do not respond solely to immediate opportunity costs and pressures. In this view, while generally grounded in monetarism, future expectations and strategies are important for inflation as well.

  5. Rational expectations - Wikiquote

    en.wikiquote.org/wiki/Rational_expectations

    The "rational expectations" school holds that agents do not know the future, but they formulate their expectations on the basis of a satisfactory knowledge (i.e., a theory) of how the economy functions.

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  7. John Muth - Wikipedia

    en.wikipedia.org/wiki/John_Muth

    In "Rational Expectations and the Theory of Price Movements", published in 1961, Muth put forward his hypothesis, in contrast to Simon, that "expectations, since they are informed predictions of future events, are essentially the same as the predictions of the relevant economic theory."

  8. Adaptive expectations - Wikipedia

    en.wikipedia.org/wiki/Adaptive_expectations

    The backward nature of expectation formulation and the resultant systematic errors made by agents (see Cobweb model) was unsatisfactory to economists such as John Muth, who was pivotal in the development of an alternative model of how expectations are formed, called rational expectations. This has largely replaced adaptive expectations in ...

  9. Rational Expectations Theory Definition - Investopedia

    www.investopedia.com/terms/r/rationaltheoryof...

    Jun 25, 2019 · The rational expectations theory is a concept and modeling technique that is used widely in macroeconomics. The theory posits that individuals base their decisions on three primary factors: their...

  10. Rational expectations - Economics Help

    www.economicshelp.org/.../rational-expectations

    May 21, 2020 · Rational expectations suggest that although people may be wrong some of the time, on average they will be correct. In particular, rational expectations assumes that people learn from past mistakes. Rational expectations have implications for economic policy.

  11. Rational expectations - WikiMili, The Free Encyclopedia

    wikimili.com/en/Rational_expectations

    Rational expectations theory defines this kind of expectations as being the best guess of the future (the optimal forecast) that uses all available information. Thus, it is assumed that outcomes that are being forecast do not differ systematically from the market equilibrium results.