ABSTRACT
SARGENT himself explores the implications of the impossibility of mutually consistent agent expectations. The result is a series of “bounded rationality” models in which agents (ironically) use adaptive expectations to learn, and in which multiple equilibria and path dependence are normal outcomes. This investigation by Sargent does not, however, reflect an awareness of the need to move beyond the new classicism: rather it represents an extension of the terrain encompassed by this paradigm’s representative-agent models. As theorists such as Lucas and Sargent have continually expanded their models’ reach into new areas, they have made the corpus of new classical economics a moving target without changing its fundamental elements. SENT documents this point in her informed critical reading of the evolving work of Thomas Sargent.
