The real macroeconomic challenge is to accept uncertainty and still try to explain why economic transactions take place – instead of simply conjuring the problem away by assuming rational expectations and treating uncertainty as if it was possible to reduce it to stochastic risk. That is scientific cheating. And it has been going on for too long now.
Back to the high ground.
Lars P. Syll’s Blog
Life After Rational Expectations
Lars P. Syll | Professor, Malmo University
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