--- [EMAIL PROTECTED] wrote: > Yes. Somewhere along the line someone--either the most ardents adherents > or the most disingenuous opponents--has defined "rational expectations" as meaning that people are perfect prognosticators, omnicient not only about > past conditions, but about future conditons as well. Under the > definition nobody has "rational expectations." <
Who has said this? Do you have a source? Rational expectations does not assume perfect knowledge, but only proposes that people will use available knowledge, include expectations about policy makers and other actors, and not make consistent errors. But what is not so commonly realized is that the term "rational" in "rational expectations" has a different meaning than general "rationality" in economics. Fred Foldvary ===== [EMAIL PROTECTED]
