Rationality
American Economic Association
A Child 's Guide to Rational Expectations Author(s): Rodney Maddock and Michael Carter Reviewed work(s): Source: Journal of Economic Literature, Vol. 20, No. 1 (Mar., 1982), pp. 39-51 Published by: American Economic Association Stable URL: http://www.jstor.org/stable/2724658 . Accessed: 30/07/2012 13:35
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Journal of Economic Literature Vol. XX (March 1982), pp. 39-51
A Child 's Guide to Expectations Rational
By RODNEY MADDOCK AND MICHAEL CARTER Research School of Social Sciences Australian National University
DRAMATISPERSONAE
(In order of speaking) Ernie, first student, is something of a Keynesian. Bert, second student, is more inclined to monetarism. Scene i Scene ii Scene iii Appendix A Appendix B References Prologue The Idea of Rational Expectations Deriving the Impotence Results Criticisms Testing Significance Conclusion Aggregate Supply Algebra of the Model
Scene i. Prologue (Two students sharing coffee in the union of an Australian university.) Ernie: Did you read that ridiculous article in Challenge the other day? * Our thanks to Neville Cain for his inspiration for this paper and to our colleagues at ANU, notably Malcolm Gray, Adrian Pagan and Jim Trevithick, for their comments. We are also grateful to Fred Gruen and to an anonymousreferee and the
A Child 's Guide to Rational Expectations Author(s): Rodney Maddock and Michael Carter Reviewed work(s): Source: Journal of Economic Literature, Vol. 20, No. 1 (Mar., 1982), pp. 39-51 Published by: American Economic Association Stable URL: http://www.jstor.org/stable/2724658 . Accessed: 30/07/2012 13:35
Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp
.
JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org.
.
American Economic Association is collaborating with JSTOR to digitize, preserve and extend access to Journal of Economic Literature.
http://www.jstor.org
Journal of Economic Literature Vol. XX (March 1982), pp. 39-51
A Child 's Guide to Expectations Rational
By RODNEY MADDOCK AND MICHAEL CARTER Research School of Social Sciences Australian National University
DRAMATISPERSONAE
(In order of speaking) Ernie, first student, is something of a Keynesian. Bert, second student, is more inclined to monetarism. Scene i Scene ii Scene iii Appendix A Appendix B References Prologue The Idea of Rational Expectations Deriving the Impotence Results Criticisms Testing Significance Conclusion Aggregate Supply Algebra of the Model
Scene i. Prologue (Two students sharing coffee in the union of an Australian university.) Ernie: Did you read that ridiculous article in Challenge the other day? * Our thanks to Neville Cain for his inspiration for this paper and to our colleagues at ANU, notably Malcolm Gray, Adrian Pagan and Jim Trevithick, for their comments. We are also grateful to Fred Gruen and to an anonymousreferee and the
References: Journal of Economic Literature, Vol. XX (March 1982) all the people all the time Bert: I have to agree with you. I said that the explanations for persistence weren 't 24 This was Hall 's criticism (1975), and is also put by Gordon to Sargent (1973, p