Rational Expectations Macroeconomics: An Introductory Handbook.

Abstract

Introductory ideas solving rational expectations models partial information and signal extraction stabilization policy problems in choosing optimal policies budget deficits and their financing the political economy of democracy the macroeconomics of an open economy representative agent models in cashless economies money in representative agent models testing the rational expectations hypothesis interpreting the evidence - the problem of observational equivalence direct tests of rational expectations.