Hargreaves Heap, Shaun - In: International Journal of Manpower 14 (1993) 9, pp. 4-22
Incorrect inflationary expectations affect the unemployment rate, hence the question of how expectations are formed is crucial. Examines two hypotheses which have dominated the discussion: the adaptive (AEH) and the rational expectations hypothesis (REH). During the 1980s it was assumed that REH...