Which economist is known for Rational Expectations?
John Nash
Thomas J. Sargent
Paul Krugman
Amartya Sen
Answer
Thomas J. Sargent, renowned for his contributions to Rational Expectations, proposed that economic agents use all available information to form expectations about the future. These expectations, in turn, influence their economic decisions. Sargent's theory emphasizes the importance of forward-looking behavior and its impact on economic outcomes. His work has significantly influenced macroeconomic modeling and policymaking, highlighting the need to consider the expectations of economic agents when designing economic policies.
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