In this paper we consider how boundedly rational agents learn rational expectations. The assumption that agents are boundedly rational is made operational by imposing computability constraints on the ...

William Bernstein has updated his classic The Intelligent Asset Allocator (2000) with a new book in his "Investing for Adults" series: Rational Expectations. Forbes.com writers are supposed to ...

This article focuses on academic theory, away from the political debate on deflation and expectations. An analogy using physics is used to examine how economics has considered the formation of ...

In general rational expectations equilibrium (REE), as introduced in Radner (Econometrica 47:655-678, 1978) in an Arrow–Debreu–McKenzie setting with uncertainty, does not exist. Moreover, it fails to ...

Sometimes navigating the financial markets is like attempting to solve a jigsaw, except the image on the box is always shifting. When the future is unknown, how do investors make decisions? The idea ...

Our economy does not always move on dotted lines. Many a time, our economic policies fail to produce the intended results despite our best efforts. If we were to name one factor that could shatter any ...

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Two economists known for their work on integrating expectations more sensibly into models of the economy have ...

With apologies to Charles Dickens, his novel about an English orphan who rises to wealth, deserts his friends, and ultimately becomes humbled by his hubris and arrogance might one day double as a plot ...

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Tom Lehrer famously described Henry Kissinger’s winning of the Nobel peace prize as the moment when satire died ...