A bottle of nice champagne …_亚博娱乐官网_亚博pt手机客户端登录

sgml
2008-09-26T13:08:18.000Z
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www.uio.no

A bottle of nice champagne to the one who publishes a reply Steinar Juel's op-ed in today's Dagens N?ringsliv where she/he clears up a few elementary misconceptions and conveys fundamental insights, like:

So-called "rational expectations" is a consistency condition.

It is a weak condition and the very opposite of "perfect foresight". Contrary to what people like Juel seem to believe, in a dynamic, stochastic model it implies that firms and individuals always are making mistakes.

Competitive markets are not the same as laissez faire. On the contrary, under laissez faire markets would not be "competitive".

So-called "representative agent" models try to account for the actions of individuals filtered through a set of (endogenously and exogenously given) institutions. Those institutions matter a lot.

It is obvious that people might have certain biases. The set of long-...