Is it enough to assume that agents have perfect foresight, or have 'rational' expectations for the economy to always - except in few cases - be in the stable saddle path?
With rational expectations, I think with shocks, there can be a temporary dislocation from the stable path, but then the agents will reoptimize, shifting the economy back to the stable path.
Are there more situations where this may happen?
Edit: Looking for conditions in the deterministic and stochastic case.