Assumptins about how people form expectations for the future shape the properties of any dynamic economic model. To make economic decisions in an uncertain environment people must forecast such variables as future rates of inflation, tax rates, government subsidy schemes and regulations. The...

It has become increasingly clear that economies can fruitfully be viewed as networks, consisting of millions of nodes (households, firms, banks, etc.) connected by business, social, and legal relationships. These relationships shape many outcomes that economists often measure. Over the past few...

The Big Problem of Small Change offers the first credible and analytically sound explanation of how a problem that dogged monetary authorities for hundreds of years was finally solved. Two leading economists, Thomas Sargent and François Velde, examine the evolution of Western European economies...