E-LOGOS - University of Economics, Prague
Faculty of Economics, University of Economics, Prague

The Rational Expectations Hypothesis: Theoretical Critique (2017)

Author: T. Frömmel

Email: xfrot00@vse.cz

Affiliation: Department of Economics, University of Economics Prague

Department of Economics
University of Economics Prague
Nám. W. Churchilla 1938/4
130 67 Praha 3
Czech Republic

Article type: Standard scientific article

Section: Philosophy of Science

Language: language

Abstract (english):

The rational expectations hypothesis as one of the building blocks of modern macroeconomic theory is analyzed critically in this paper. It is concluded that expectations may be rather backward-looking and adaptive since man does not search for all possible pieces of information and his learning by experience from previous mistakes may be imperfect and quite slow. Instead, mixed expectations are evaluated as a reasonable compromise.

Download/View: 24_07_frommel.pdf

Current issue

Next issue will be published in August 2019.

Indexed by

E-LOGOS was licensed as peer-reviewed scientific journal by the Research and Development Council of the Government of the Czech Republic.

E-LOGOS is indexed in ERIH Plus.