Macroeconomics has been dominated over the last four decades by the Rational Expectations Hypothesis (REH) which implies that economies are inherently stable. REH is a key element of the New Neoclassical Synthesis (NNS) macroeconomic model which has also played a dominant role in theory and...

Popper recognizes that there are, at least, two versions of his "Rationality Principle" (RP) yet he does not explain either how they relate to other parts of his works or which version social scientists should adopt. We argue that Popper's formulation of RP can be upgraded by explicitly...

The rational expectations hypothesis (REH) is the standard approach to expectations formation in macroeconomics. We discuss its compatibility with two strands of Karl Popper's philosophy: his theory of knowledge and learning, and his "rationality principle" (RP). First, we show that the REH is...

The rational expectations hypothesis (REH) is the standard approach to expectations formation in macroeconomics. We discuss its compatibility with two strands of Karl Popper's philosophy: his theory of knowledge and learning, and his "rationality principle" (RP). First, we show that the REH is...

Popper recognizes that there are, at least, two versions of his "Rationality Principle" (RP) yet he does not explain either how they relate to other parts of his works or which version social scientists should adopt. We argue that Popper's formulation of RP can be upgraded by explicitly...

The rational expectations hypothesis (REH) is the standard approach to expectations formation in macroeconomics. We discuss its compatibility with two strands of Karl Popper's philosophy: his theory of knowledge and learning, and his "rationality principle" (RP). First, we show that the REH is...