#rational expectations

[religion-is-a-mental-illness]

Rational expectations are the opposite of “faith.”

Also, I can prove electricity exists.

[sbeniwal6]

Long Run Phillips Curve And Rational Expectations

Long Run Phillips Curve And Rational Expectations

Long Run Phillips Curve And Rational Expectations

The viewpoint about inflation and unemployment put forward by Rational Expectations Theory which is the cornerstone of recently developed macroeconomic theory, popularly called new classical macroeconomics.

Friedman’s adaptive expectations theory assumes that nominal wages lag behind changes in the price level. This lag in the adjustment of…

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[vkumar05-blog]

Rationality of Expectations does not fit in the Economic Theory of Asset Markets - Rational expectations theory has been the pillar on which most economic research has been carried out during the last few decades. It is a concept that practically reduced human behavior to mathematical equations and statistical figures. However, the general inability of this theory to explain business cycles and its spectacular failure in explaining asset market fluctuations seem to have discredited it in an irreversible manner. Is this basic principle which guided economists for over half a century, finally dead?

[amjr5448]

a septon on what is passed on as modern economic theory (as I was taught in econ grad school)

a septon on what is passed on as modern economic theory (as I was taught in econ grad school)

      what to you (and me?) is a random walk punctuated by radicals, integrals and matrices optimizations constrained by Lagrange and other foreign sounding parameters is actually

    a peripatetic delusion!

    as one skeddadles with perspicacity to optimality and market equilibrium invoking the holy names of Wilfredo Pareto Carl…

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[rsdcrpsfire]

Catastrophizing

Rational Expectations

Catastrophizing is an irrational thought a lot of us have in believing that something is far worse than it actually is. Catastrophizing can generally can take two forms. The first of these is making a catastrophe out of a situation.

What is Catastrophizing?

Catastrophizing has two parts:

Part 1: Predicting a negative outcome.

Part 2: Jumping to the conclusion that if the…

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[communityrecords-blog]

Full album stream now available for Sun Hotel - Rational Expectations. 

Album release show this saturday jan 31 at one eyed jacks. link HERE

[communityrecords-blog]

New Sun Hotel song up on YouTube

[versatilism]

Of course it would be silly to deny that we at least try to be rational. There are rationalist aspects to what we do. Human beings are at least partly motivated by selfish interest. But this very narrow view of human nature has actually created a kind of poor society in the sense of everything being reduced to monetary value. Now people are asking why we need subjects like anthropology or history of art or sociology when all we need is making money. That makes for a very poor society. You are seeing arguments that we should commercialise the BBC so that they can make more things that people can watch without realising that the BBC is the envy of the world for its ability to produce very high quality cultural programmes. So that kind of worldview has made societies very poor in terms of cultural diversity and things like that. But more importantly it’s created this society where being bad, if you like, is considered something good or even being clever. You are actually a sucker if you don’t cheat. Once you begin to understand the world in this very narrow, impoverished way then you will create a society which is actually very inefficient. Then you will have to say well everyone’s out to cheat and promote their own self-interest so we have to monitor everyone all the time, and then who’s going to monitor the monitors? We have to hire monitors who can monitor the monitors and so on and so on. Society becomes very inefficient not to speak of being very unpleasant.

Ha-Joon Chang, Why Everybody Should Know Some Economics