A Reader's Guide to Rational Expectations

This important reference book provides a non-partisan introduction to rational expectations, traces its evolution through three decades, and puts a comprehensive annotated bibliography at the reader's fingertips.

In the lengthy introduction, Redman examines in a non-technical way what it means to form expectations of variables rationally, explores the concept's ambiguities, and considers the numerous criticisms the concept has raised. She discusses the evolution of the concept with an emphasis on its association with new classical economics, reviews briefly the empirical findings and obstacles to testing rational expectations and puts the development into perspective within a broader scope of economics in general.

The second part provides the reader with an annotated bibliography of over 470 significant books and articles on rational expectations.

A Reader's Guide to Rational Expectations will be an essential reference guide for all economists who wish to keep abreast of the most recent developments in economic theory.

Deborah A. Redman, Professorial Lecturer, George Washington University, US