The problem of expectations in economic models is reviewed through the intellectual development of the author. Initial … efforts at macroeconomic modeling such as Foley-Sidrauski (Foley and Sidrauski 1971) treated expectations as conditioning … expectations) in this context leads to saddle-point instability of equilibrium, and the unanswered question of what behavioral …

extent that workers' (adaptive) price expectations lead to accelerating inflation or deflation, this will prompt central … equal to their anticipated values. However, that mechanism will not work if general uncertainty (“nervousness”) prevails … among businessmen. Whereas economists before him tended to focus on the role of expectations in assets markets only …