“If we look beyond the issue of monetary nonneutrality, then we do find areas of macroeconomics that use rational expectations and in which important recent progress has been made.”

—  Robert Barro

Robert J. Barro, "Rational Expectations and Macroeconomics in 1984" (1984).

Adopted from Wikiquote. Last update June 3, 2021. History

Help us to complete the source, original and additional information

Do you have more details about the quote "If we look beyond the issue of monetary nonneutrality, then we do find areas of macroeconomics that use rational expect…" by Robert Barro?
Robert Barro photo
Robert Barro 18
American classical macroeconomist 1944

Related quotes

“One troublesome aspect is the place of rational expectations macroeconomics in the often political debate over Keynesian economics. At least implicitly, many people feel that what's bad for the rational expectations viewpoint is good for the Keynesian one, and vice versa. But it is hard to see how the problems in using the rational expectations approach to explain monetary nonneutrality can alleviate the theoretical and empirical shortcomings of the Keynesian model.”

Robert Barro (1944) American classical macroeconomist

Robert J. Barro, "Rational Expectations and Macroeconomics in 1984" (1984).

“New-classical economics has been undeniably influential, but not in the way that its three prominent creators originally imagined. Its most important contribution to macroeconomics, the assumption of rational expectations, was stolen almost immediately, and applied more fruitfully, by the new Keynesians.”

Robert J. Gordon (1940) American economist

"Fresh Water, Salt Water, and other Macroeconomic Elixirs", 1989

“The paper develops a simple macroeconomic framework for the study of exchange rate movements. The purpose is to develop a theory that is suggestive of the observed large fluctuations in exchange rates while at the same time establishing that such exchange rate movements are consistent with rational expectations formation. In developing a formal model we draw on the role of asset markets, capital mobility, and expectations that have been emphasized in recent literature.”

Rudiger Dornbusch (1942–2002) German economist

Rudiger Dornbusch, "Expectations and exchange rate dynamics." The journal of political economy (1976): 1161-1176. p. 1161

Thomas J. Sargent photo

“Cagan’s adaptive mechanism for explaining expectations of inflation has sometimes been criticized as an ad hoc formulation that is inconsistent with the hypothesis that expectations are rational. In this paper, we have showed that conditions exist under which adaptive expectations are fully rational.”

Thomas J. Sargent (1943) American economist

"Rational expectations and the dynamics of hyperinflation." 1973

“My recent work on macroeconomics has stressed long-term issues, including the determinants of long-run economic growth. From the standpoint of fighting world poverty, nothing is more important than figuring out which policies differentiate the fast-growing countries from the slow-growing ones.”

Robert Barro (1944) American classical macroeconomist

Source: Nothing Is Sacred (2002), p. xviii

“Behaviorists tell us that we tend to overweight and overreact to the most recently received information. If we do, we will find that the information that we thought was so important becomes tempered, and reduced in significance, by new and related information that follows.”

Robert Haugen (1942–2013) American economist

Source: The Inefficient Stock Market - What Pays Off And Why (1999), Chapter 12, The Forces behind the Technical Payoffs to Price History, p. 121

“The role of expectations is not limited to monetary policy but is crucial in many areas of economics, as Bob showed in his later research on investment, unemployment, taxation, public debt management, and asset pricing. In all of these situations, the appropriate evaluation of policy takes account of the way that expectations would be rationally formed.”

Robert Barro (1944) American classical macroeconomist

Source: Nothing Is Sacred (2002), p. 29

John N. Bahcall photo

“We often frame our understanding of what the space telescope will do in terms of what we expect to find, and actually it would be terribly anticlimactic if in fact we find what we expect to find. … The most important discoveries will provide answers to questions that we do not yet know how to ask and will concern objects we have not yet imagined.”

John N. Bahcall (1934–2005) American physicist

John N. Bahcall, quoted in his obituary at CalTech (7 September 2005) http://www.spitzer.caltech.edu/features/articles/20050907.shtml; On the Hubble Space Telescope's capabilities for the advancement of science

S. M. Krishna photo

“We have to look at the Iran issue beyond the issue of energy trade. In the first place, we have to think about the security and stability in the Gulf region. India has vital stakes in the Gulf region. Six million Indians live and work in the Gulf region and beyond. It is one of the critical destinations of our external trade -- over $100 billion in exports, and over 60% of oil imports, and a major source of remittances.”

S. M. Krishna (1932) Indian politician

Declining Hillary Clinton's request that India should stop trading with Iran, and describing the need of Iran for India, 9 May, 2012. http://www.iranwatch.org/government/US/DOS/us-dos-remarkssecretaryclinton-and-indianexternalaffairsminister-050812.htm

Martin Luther King, Jr. photo

“It can't be because man is stagnant in his scientific progress. Man's scientific genius has been amazing. I think we have to look much deeper than that if we are to find the real cause of man's problems and the real cause of the world's ills today. If we are to really find it I think we will have to look in the hearts and souls of men.”

Martin Luther King, Jr. (1929–1968) American clergyman, activist, and leader in the American Civil Rights Movement

1950s, Rediscovering Lost Values (1954)
Context: There is something wrong with our world, something fundamentally and basically wrong. I don't think we have to look too far to see that. I'm sure that most of you would agree with me in making that assertion. And when we stop to analyze the cause of our world's ills, many things come to mind. We begin to wonder if it is due to the fact that we don't know enough. But it can't be that. Because in terms of accumulated knowledge we know more today than men have known in any period of human history. We have the facts at our disposal. We know more about mathematics, about science, about social science, and philosophy than we've ever known in any period of the world's history. So it can't be because we don't know enough. And then we wonder if it is due to the fact that our scientific genius lags behind. That is, if we have not made enough progress scientifically. Well then, it can't be that. For our scientific progress over the past years has been amazing. Man through his scientific genius has been able to dwarf distance and place time in chains, so that today it's possible to eat breakfast in New York City and supper in London, England. Back in about 1753 it took a letter three days to go from New York City to Washington, and today you can go from here to China in less time than that. It can't be because man is stagnant in his scientific progress. Man's scientific genius has been amazing. I think we have to look much deeper than that if we are to find the real cause of man's problems and the real cause of the world's ills today. If we are to really find it I think we will have to look in the hearts and souls of men.

Related topics