rational expectations hypothesis
*noun*; a method of representing the economy as the sum of many identical individuals and firms, each represented by a system of mathematical equations. The Rational Expectations Hypothesis (REH) takes its name from the premise that economic actors, i.e., everyone, do not make consistent errors about the present or future behavior of markets. REH was devised mainly as a rebuke to Keynesian economics, and in particular, the strategy of fiscal policy or monetary policy. According to the REH, fiscal policy does not alter aggregate demand because the "average" person recognizes that her lifetime income is not increasing--so she needs to save rather than spend the stimulus money, in anticipation of higher taxes in the future. At the same time, monetary policy does not work because it relies on lowering interest rates to make more money available; more money means inflation, but people have to be deceived into thinking prices for their product are going up, so they will expand production. According to REH, people or firms will figure this out, and see increased demand as mere inflation. Instead of increasing output and employment, they'll want to raise prices so they can meet their future bills. According to REH, both monetary and fiscal policy rely on illusions to work; and since people (on average) will make rational estimates o the future, they will defeat these illusions.
The Urban Dictionary Mug
I have a “gift” for plathering. The definition is right on. Can’t wait to have a cup of coffee across the table from my guy who will TOTALLY get it.
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Got it quick and husband loves it
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i love this mug it made me so happy
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Veryfast ship in todays world...nice quality mug....will be buying more
Gave it to my uncle and he rewarded me with a wet kiss. Best gift ever!
mug gud, got it for my gf but mug just made her pregananant. Help pliz mug says its going after my thicc mum next. pliz send help
I love the personalized mug I got from you! I never thought there were mugs available like the one I got and it's going to make the BEST holiday gift! Thank-you!!
My friend and I added a word ! Gotta get merch of it now. Thanks for the coffee mug!
Easy to order quality mug.
It’s cute and wasn’t broken when it shipped. Just smaller than expected
I got it in the mail. then The next day it was sleeping with My non Existant Gf
I thought this mug was a bear.
it is pretty good but not all of it describes me god bless all Nevaeh's
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