Joan Robinson (1972):
If the economy is always in equilibrium anyway, where is the room for expectations?
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Sign up to join this communityJoan Robinson (1972):
If the economy is always in equilibrium anyway, where is the room for expectations?
Because there is no uncertainty in the economy than there's no need to work with expectations. If the economy is always at equilibrium then you will always know the actual values for your variables of interest, meaning you will know for example the price level, output, interest rate etc