The rational expectations revolution: an assessment

Article Abstract:

Macroeconomics did not rely much on mathematics in the 1930s, but after the 1940s Richard Stone and Jan Timbergen introduced quantitative macroeconomics. John Maynard Keynes was suspicious of Timbergen's endeavors to construct a closed empirical structuring of the economy, but the model gained prominence, and economists began to analyze macroeconomic relations. The end of the 1950s witnessed serious research on expectations theory by Herbert Simon and John Muth. Muth employed the rational expectations theory introduced by Robert Lucas in his analysis. Lucas was responsible for solving the implications of Muth's rational expectations theory for the Phillips Curve and the labor markets.

Models, Rational expectations (Economics)

---

The limits of macroeconomics

Article Abstract:

Market forces, which are the result of both microeconomic and macroeconomic phenomena, limit the dimensions of macroeconomics, and the pre-Keynesian approach to capital theories facilitates a better understanding of this complexity. Macroeconomists ignore the time element in theorizing which proves that macroeconomics cannot adequately deal with the capital theory. Macroeconomics does not deal with policy activism, institutional reforms, theoretical advancement and entrepreneurial predictions.

Usage, Evaluation, Keynesian economics

---

Rational expectations and the new classical macroeconomics

Article Abstract:

Major changes in the content of microeconomics and monetary theory have erased the distinction between macroeconomics and microeconomics, but this new economic theory has been restricted to academic environs. Macroeconomic and monetary policies of government policy-making departments have remained untouched by this new school of thought. Keynesian economics has been declared defunct and the new macroeconomic theories are based on the elements of microeconomics.

Methods, Microeconomics

Similar abstracts:

• Abstracts: International environmental policy on air pollution from ships. Sustainability, subsidiarity and deregulation: new directions in EU environmental policy
• Abstracts: Greece's institutional response to sustainable development. The politics of green energy
• Abstracts: The opening of Russia: an assessment of the impact on East-West trade. A note on rivalry in East Asia: the case of sourcing
• Abstracts: How excessive governments killed ancient Rome. Criteria for judging macroeconomic forecasting. The art of forecasting: from ancient to modern times

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.