Learning, Expectations, and the Financial Instability Hypothesis

MARTIN GUZMAN; PETER HOWITT

Contemporary Issues in Macroeconomics: Lessons from The Crisis and Beyond

Palgrave Macmillan

Año: 2015; p. 50 - 60

Expectations matter. Many economic and financial decisions depend on the perception of future incomes and prices. The evolution of expectations, and how correct they are over time, determines the stability of the system.