The Rational Expectations Hypothesis: An assessment on its real world application
The Rational Expectations Hypothesis was first developed as a theoretical technique aimed at explaining agents’ behavior in a given environment -- In particular, it describes how the outcome of a given economic phenomenon depends to a certain degree on what agents expect to happen -- Subsequently, i...
- Autores:
-
Tobón, Santiago
- Tipo de recurso:
- Fecha de publicación:
- 2014
- Institución:
- Universidad EAFIT
- Repositorio:
- Repositorio EAFIT
- Idioma:
- eng
- OAI Identifier:
- oai:repository.eafit.edu.co:10784/5280
- Acceso en línea:
- http://hdl.handle.net/10784/5280
- Palabra clave:
- Rational Expectations
EXPECTATIVAS RACIONALES (TEORÍA ECONÓMICA)
MACROECONOMÍA
POLÍTICA MONETARIA
Rational expectations (Economic theory)
Macroeconomics
Monetary policy
- Rights
- License
- Copyright (c) 2015 Ecos de Economía
| Summary: | The Rational Expectations Hypothesis was first developed as a theoretical technique aimed at explaining agents’ behavior in a given environment -- In particular, it describes how the outcome of a given economic phenomenon depends to a certain degree on what agents expect to happen -- Subsequently, it was introduced into macroeconomic models as a way to explain the ineffectiveness of monetary policy -- Since then, most of these models have been based on the rational expectations assumption -- This paper assesses the real life application of this feature based on two arguments: the determination of an objective reality through beliefs and subjective expectations; and the exclusion of the evolution of human knowledge and innovation in macroeconomic models |
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