Details

Autor(en) / Beteiligte

• Struthers, John J.

Titel

Rational Expectations: A Promising Research Program or a Case of Monetarist Fundamentalism?

Ist Teil von

• Journal of economic issues, 1984-12, Vol.18 (4), p.1133-1154

Ort / Verlag

Lincoln: Routledge

Erscheinungsjahr

1984

Link zum Volltext

Quelle

Taylor & Francis Journals Auto-Holdings Collection

Beschreibungen/Notizen

• One of the most challenging developments in theoretical and empirical macroeconomics is the concept of rational expectations. Some commentators have claimed that the concept has revolutionized macroeconomic analysis. A study is undertaken to examine a number of issues that the rational expectations paradigm, as it is presented in the literature, raises with regard to the limitations of activist government policies, but, on the whole, does not adequately address. These include: 1. the nature and character of the rational expectations approach, 2. the extent that the informational assumptions of the rational expectations paradigm are realistic, and 3. whether the rational expectations model represents a breakthrough in macroeconomic analysis or is an example of monetarist fundamentalism. It is contended that the rational expectations approach does not, in light of examining its informational assumptions and the inconsistencies inherent in its policy implications, amount to such a devastating attack on activist government policies as its main proponents have argued.