ABSTRACT
The macroeconomic approach to the questions of stability centers on the role of rational expectations. The original interest in 'rational expectations' was based on the demands for a consistent equilibrium theory. The problem with the Rational Expectations Hypothesis is not that it lacks a theory of learning, but that it relies on a false theory of learning. For the Rational Expectations Hypothesis to provide a means of avoiding the difficult microeconomics questions about learning or expectations formation, facts must not only speak for them selves but they must say the same thing to every individual. The inevitability of theorist and the individual decision maker reaching the same conclusion regarding the individual's optimum is the basis of the modern use of the Rational Expectations Hypothesis. The students make a rational choice to spend their time collecting mountains of data, which are fed into computers to reduce the data to commonly understood parametric statistics.
