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"... A lucid introduction to rational expectations theory, its policy prescriptions and empirical applications." Sheila Dow, The Economic Journal
It fills the gap between introductory macroeconomics texts in which expectations formation is incidental and the technically advanced texts and journal literature on rational expectations.
In this new edition, the authors have both extensively revised the presentation of much of the material covered and extended the coverage to include recent developments in the subject, most notably in the theory of aggregate consumption and the theory of real business cycles.
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