A Reader’s Guide To Rational Expectations

‘This is a concise and balanced overview of the theory of rational expectations and its impact upon modern macroeconomic analysis. This text begins with a well-organized, well-written and non-technical introduction into rational expectations. The text also includes a comprehensive, although non-exhaustive, list of major and influential books, articles and reviews of rational expectations published from 1961 through 1989.’
– Timothy E. Sullivan, American Reference Book Annual

‘. . . provides the most comprehensive bibliography of the literature that I have yet come across. It will be particularly useful for graduate students who are trawling the literature for relevant material.’
– David Demery, The Economic Journal

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.