adaptive expectations From: A Dictionary of Economics | Date: 2002| Author: JOHN BLACK | © A Dictionary of Economics 2002, originally published by Oxford University Press 2002. Copyright information

adaptive expectations The model of expectations formation in which expectations adjust gradually towards observed values of the variable concerned. At any given time people hold expectations about the future values of economic variables, such as the rate of inflation. Under adaptive expectations, if the level observed in the current period equals what was expected, the expectation does not alter. ...

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