Carla Tardi is a technical editor and digital content producer with 25+ years of experience at top-tier investment banks and money-management firms. The rational expectations theory is a concept and ...

Rational expectations is a basic economic theory that originated with a paper written in 1972 by future Nobel Prize-winning economist Robert Lucas. The theory of rational expectations has been ...

Asymmetries play an important role in many macroeconomic models. We show that assumptions on household and firm expectations play a key role in determining the effects of these asymmetries on ...

This paper estimates a standard Dynamic Stochastic General Equilibrium (DSGE) model that includes a wage and price Phillip's curves with different expectation formation processes for Brazil and the ...

Consumer demand is a driving force of economic growth, accounting for about two-thirds of the US economy. So when policymakers want to determine how a particular fiscal or monetary policy will land, ...