What is the difference between rational expectations and irrational expectations? Why is irrational expectation called backward looking?

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What is the difference between rational expectations and irrational expectations? Why is irrational expectation called ‘backward looking?’

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Macroeconomics Theory And Policy

ISBN: 9780070091450

3rd Edition

Authors: D.N. Dwivedi

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Question Posted: Nov 07, 2024 04:01 AM

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What is the difference between rational expectations and irrational expectations? Why is irrational expectation called backward looking?

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Macroeconomics Theory And Policy

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