Rational expectations theory came up with an explanation of stagflation. If workers and businesses anticipate the effects of monetary and fiscal policy, they will not change their economic behavior.

Two American scholars won the Nobel Memorial Prize in Economic Sciences for their separate research examining cause-and-effect relationships in the economy and how expectations can drive policy ...

Just how important is money? Few would deny that it plays a key role in the economy.­ During the Great Depression of the 1930s, existing economic theory was unable either to explain the causes of the ...