ABSTRACT
A discussion of the treatment of expectations in Keynesian econometric models is almost bound to be conducted in terms of responses to the Rational Expectations Hypothesis (REH). In this chapter I want to examine how the proprietors of large-scale Keynesian econometric models have or could respond to the challenge presented by the REH. My main theme is that this response should involve exploration rather than confrontation, with Keynesian modellers experimenting with some, but not necessarily all, of the ideas embodied in the REH.
