Search
Search Results
-
The conceptual inconsistency of the rational anticipation theory
103-126Views:251In this article we analyse various contradictions in the assumptions and consquences forming the theory of rational expectations. The argument aims to demonstrate that important parts of the theory cannot be maintained at the same time without damaging the theory's logical structure, while we recognize that other parts force the theory far from the basis of reality. However, the rational ecpectations hypothesis is not simply a useless theoretical construct, since by delineating the proper boundaries of this hypothesis we can offer a clear justification for the operability of inflation targeting systems. If we relax the strong presumptions, giving a place to a monetary authority that is able and calculated to drive by Muth, although some consequences of this conception will be consistent with the assumptions - which depend on conditions that seem not to hold - of the original (strong) definition.
Journal of Economic Literature (JEL) codes: B2, E5.
-
On the theoretical background to modern financial policy
139-156Views:91At the formation of macroeconomics and modern economic policy a series of traditional Keynesian concepts which still carried great weight were changed in the wake of attacks from monetarism and neo-classicism. The currently fashionable financial policy regimes and the dilemmas of economic policy cannot be understood without analysing the theoretical revolution referred to above. The article examines the relevant areas and claims connected to currency and monetary policy in the modern economy, or to use a common expression the macro-economy of the open economy, with special reference to the paradigm shift of recent decades. It also studies the currently common conventions of applied economics, which, sprouting from theoretical bases, in practice influence the room for manoeuvre in national economic policy.