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Copy file name to clipboardExpand all lines: lectures/cagan_adaptive.md
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This outcome is typical in models in which adaptive expectations hypothesis like equation {eq}`eq:adaptexpn` appear as a
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component.
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In this lecture {doc}`monetaris theory of the price level <cagan_ree>`, we studied a version of the model that replaces hypothesis {eq}`eq:adaptexpn` with
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In this lecture {doc}`monetarist theory of the price level <cagan_ree>`, we studied a version of the model that replaces hypothesis {eq}`eq:adaptexpn` with
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a "perfect foresight" or "rational expectations" hypothesis.
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