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...

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...