Jim Devine wrote: > and in finance, the hard-core versions of the "efficient markets > hypothesis" are based on rational expectations.
Maybe I'm wrong, but you seem to insinuate that this is wrong. It's not necessarily so. Why is rational expectations a bad hypothesis to adopt when setting up a model to look at certain problems (while ignoring others)? Didn't Marx assume rational expectations (in fact, the degenerate case of rational expectations, "perfect foresight") throughout his Capital? Didn't that assumption serve him well *for the points he was trying to make*? _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
