rational expectations vs adaptive expectations
Role of Rational and Adaptive Expectations in focusing on future macro economic variables. Saying that it did not imply an immediate jump to people forming expectations consistent with the new policy regime. The critque though was about how people respond to changes in their economic environment and here you can't say that the rational expectations did not contradict adaptive expectations. westslope | Would it be in his interest to do X if he expects others to do Y if he does X, and they....etc." Nick Rowe | This could make a top ten list of "statements that will get you thrown out of Rochester". III Theories explained. In the other poem, Good Girl, girls are expected to hold up the world. Don't bother with this one. 2. Topics: Inflation, Economics, Macroeconomics Pages: 5 (1465 words) Published: July 12, 2011. Apollo and Dionysus are sons of Zeus. Much of your life more di cult concept as clearly and in psychologi cally ⦠That's where the real dichotomy comes. So if we were talking about people's expectations of some variable X, we wrote down an equation like X(t)e - X(t-1)e = B[X(t-1) - X(t-1)e], 0
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