It is commonly believed that macroeconomic models are not useful for policy analysis because they do not take proper account of agents' expectations. Over the l

A Rational Expectations Approach to Macroeconometrics pursues a rational expectations approach to the estimation of a class of models widely discussed in the ma

This book originated from a 2010 conference marking the fortieth anniversary of the publication of the landmark "Phelps volume," Microeconomic Foundations of Em

A crucial challenge for economists is figuring out how people interpret the world and form expectations that will likely influence their economic activity. Infl

This book develops the idea of rational expectations and surveys its use in economics today.