Cagan (Philip Cagan)

Philip Cagan was an American economist known for his work on monetary economics and the theory of inflation. He is particularly recognized for his contribution to the understanding of how people expect inflation to affect their behavior, especially in his influential paper on adaptive expectations. Cagan's work emphasized how these expectations can influence economic decisions, such as spending and saving, ultimately impacting inflation rates. His insights have shaped central banking practices and policies regarding how inflation is perceived and managed in economies, making his contributions significant in both academic research and practical monetary policy.