Anchoring Economic Predictions in Common Knowledge . ¤

  title={Anchoring Economic Predictions in Common Knowledge . ¤},
  author={Roger Guesnerie},
The paper examines within a uni…ed methodology expectational coordination in a series of economic models. The methodology views the predictions associated with the Rational Expectations Hypothesis as reasonable whenever they can be derived from more basic Common Knowledge hypothesis. The paper successively considers a simple non noisy N-dimensional model, standard models with " intrinsic " uncertainty, reference intertemporal models with in…nite horizon. It reviews existing results and suggests… CONTINUE READING
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