Introduction

It is commonly asserted that the monetarist anti-Keynesian counterrevolution introduced adaptive expectations into macroeconomics (via the “natural” rate of unemployment model) and that its sequel, the New Classical anti-Keynesian counter-revolution, performed a similar cleansing task with the introduction of “rational” expectations. Having claimed the linguistic high ground (“natural” and “rational”) for these counterrevolutions the textbook writers have followed suit with this assertion.