Cagan’s adaptive mechanism for explaining expectations of i… - Thomas J. Sargent

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Cagan’s adaptive mechanism for explaining expectations of inflation has sometimes been criticized as an ad hoc formulation that is inconsistent with the hypothesis that expectations are rational. In this paper, we have showed that conditions exist under which adaptive expectations are fully rational.

Thomas J. Sargent

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About Thomas J. Sargent

Thomas John "Tom" Sargent (born July 19, 1943) is an American economist, who is currently the W.R. Berkley Professor of Economics and Business at . He specializes in the fields of macroeconomics, monetary economics and time series econometrics.

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Alternative Names: Thomas John "Tom" Sargent • Thomas John Sargent • Thomas Sargent • Sargent • Tom Sargent

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Originators like Thomas J. Sargent:

Paul Krugman Robert Barro Paul Samuelson Kenneth Arrow George Stigler

Additional quotes by Thomas J. Sargent

My published work is just a record of my learning. I'm sharing it with people so they won't make the same mistakes that I did. It's been a painful and slow process. My work is like a journey, a journey of discovery.

For policy, the central fact is that Keynesian policy recommendations have no sounder basis, in a scientific sense, than recommendations of non-Keynesian economists or, for that matter, non-economists.

It is paradoxical that an administration that came to office rejecting the whole apparatus of Keynesian economics finds itself presiding over a stream of what threaten to be permanent deficits.

Cagan’s adaptive mechanism for explaining expectations of inflation has sometimes been criticized as an ad hoc formulation that is inconsistent with … - Thomas J. Sargent

About Thomas J. Sargent

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