On Mon, 11 Nov 2002, William Dickens wrote:
> concern to some decision problem. Rational expectations does require
> that ones forecast have minimum variance and not just that it is
> unbiased. However, money is still neutral in most RatX models even if
Of course. Meant high in absolute terms, n
William Dickens wrote:
> Rational expectations does require
> that ones forecast have minimum variance and not just that it is
> unbiased.
In defense of Eric, he didn't say anything false. He said RE is
consistent with high variance. It is, as long as that high variance is
also the minimum var
Nope. Still not right. Someone with rational expectations is making the
best possible use of available information to forecast variables of
concern to some decision problem. Rational expectations does require
that ones forecast have minimum variance and not just that it is
unbiased. However, money
