TY  - JOUR
AU  - Taylor,John B.
TI  - Rational Expectations Models in Macroeconomics
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 1224
PY  - 1986
Y2  - March 1986
UR  - http://www.nber.org/papers/w1224
L1  - http://www.nber.org/papers/w1224.pdf
N1  - Author contact info:
John B. Taylor
Herbert Hoover Memorial Building
Stanford University
Stanford, CA 94305-6010
Tel: 650/723-9677
Fax: 650-723-1687
E-Mail: John.Taylor@stanford.edu
AB  - This paper is a review of rational expectations models used in macroeconomic research. The purpose is to examine in some detail the differences between the models, the advantages and disadvantages of alternative models the empirical support for the models and their policy implications. The main theme is that there os a wide diversity among rational expectations models in macroeconomics, despite their common expectational assumptions and methods of analysis. Information-based and contast-based theories are reviewed as alternative models of aggregate supply. A brief review od rational expectations models of the demand side is also provided, along with a discusion of some problems with the rational expextations assumption.
ER  -