This paper provides a dynamic rational expectations equilibrium model in which investors have heterogeneous information …

analysis known as rational expectations. The readings trace the development of this approach from the late 1970s, when it was …. In the 1970s the rational expectations school challenged the traditional Keynesian view of the world. Economic models …

departures from rational expectations increase the potential for instability in the economy, strengthening the importance of … anchoring inflation expectations. We also find that the simple commitment rule under rational expectations is robust when …

This collection of essays uses the lens of rational expectations theory to examine how governments anticipate and plan … in economics. Rational expectations theory is based on the simple premise that people will use all the information … rational expectations can satisfactorily interpret a range of historical and contemporary events. He focuses on periods of …