A World of Stasis and Thought Uniformity
"The Rational Expectations Hypothesis thus leads economists to imagine a world of perfect knowledge and universal thought uniformity. In a World of Rational Expectations individuals are able to predict perfectly the future prospects of all companies and investment projects, except for the random forcasting errors that cancel each other out over time."
"The Rational Expectations Hypothesis thus leads economists to imagine a world of perfect knowledge and universal thought uniformity. In a World of Rational Expectations individuals are able to predict perfectly the future prospects of all companies and investment projects, except for the random forcasting errors that cancel each other out over time."
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