Skip to main content
Return to Brookings Papers on Economic Activity
BPEA Article

Rational Expectations in the Macro Model


THE ANTICIPATIONS of households and firms played a central role in Keynes' General Theory, and in the thinking of every macrotheorist since. My purpose in this paper is to examine the major new issues about anticipations raised by the recent explosion of theoretical and empirical work based on the theory of rational expectations



Get daily updates from Brookings